Rainer v. Security Bank & Trust Co.

Benham, Judge.

Appellants Rainer, husband and wife, filed suit against appellee bank, alleging the bank had refused to cancel a collateral note, a deed to secure debt, and a hypothecation agreement despite payment in full of the underlying indebtedness. The bank answered and defended its refusal to cancel on the ground that the deed to secure debt and the hypothecation agreement, by means of open-ended clauses, were taken as additional collateral for all present and future debts of Timber Harvesters, Inc., a corporation of which Mr. Rainer was president and sole stockholder, and Mrs. Rainer…