N. E. Merchants National Bank v. Auto Owners Finance Co.

In this action for conversion of an automobile brought by a finance company, the cause was tried on an Agreed Statement of Facts. Material to the issue before this court are these facts:

Raymond E. Borrelli, on or about September 12, 1962 executed a purchase-money security agreement with the N. E. Merchants National Bank, (Bank) under the terms of which Borrelli gave to the Bank a security interest in a 1962 Rambler American two-door sedan to secure a promise in writing to pay the plaintiff $2,055.22 in 36 monthly installments of $57.02. The security agreement was not recorded. After making…