City Nat. Bank of Galveston v. Underwood

This litigation grew out of the transaction fully stated in the case of City National Bank v. Pearce, 291 S. W. 291, recently decided 'by this court, wherein appellant loaned Lometa State Bank $10,000 on its note, collaterally secured with its customer’s notes aggregating $14,705.26, among which was the note of appellee for $2,000, and on which appellant here sues, alleging that it is a due course holder under indorsement of Lometa State Bank, payee in the note. Appellee pleaded that at one time he owed Lometa State Bank a note for $2,000, which was held by Federal Intermediate Credit Bank,…