Bank of Marion v. Beck

The agreed statement is that O. E. Sharp, appellee’s tenant, owed appellee $1,198.20 for rent and supplies. Proceeds of 60 bales of cotton upon which appellee had a landlord’s lien were, without appellee’s knowledge or consent, applied on Sharp’s note to the Bank of Marion. The bank knew of the lien. Sharp either directed or acquiesced in the transaction. The landlord’s account was due November 1, 1937.

In February, 1938, the bank became insolvent. Appellee’s suit was filed April 12. The bank, Sharp, and representatives in charge of the bank, were made defendants. The claim was not presented…