Farmers & Merchants State Bank v. Lloyd

We review a record establishing facts which, if proved at trial, would constitute a good defense to the Bank’s present action on the promissory note in question.

It is not disputed that since November 6, 1972, Lloyd has borrowed various sums of money from the Bank, executing several promissory notes as evidence of his indebtedness. From time to time he made payments to the Bank which the Bank apparently applied to the outstanding balance on the various promissory notes. On November 20, 1974, Lloyd was indebted to the Bank in the amount of $11,500.00 on but one promissory note, then about two…