DeKalb County Bank v. Haldi

Banke, Judge.

The appellee brought this suit to recover the value of two certificates of deposit which he had pledged as security for a loan made to his mother by the appellant bank. He alleged that upon his mother’s death two months after the loans were made, the bank wrongfully applied the certificates in payment of the notes. In its answer, the bank admitted using the certificates to pay the notes but contended that such action was authorized because the notes were in default. It also alleged, in the alternative, that the transaction was rescinded because the appellee had fraudulently…