Kelley, Glover & Vale, Inc. v. Heitman

This action was on a promissory note and for the foreclosure and sale of collateral pledged therewith. The note was given by the appellants to the First National Bank of Gary of which the appellee is receiver. The appellants answered that there was a failure of consideration and that the transaction was ultra vires. The trial court made a special finding of facts and stated conclusions of law favorable to the appellee upon which errors are assigned.

The trial court found that the appellant Kelley, Glover & Vale, Inc. was an Indiana corporation with $100,000 of preferred stock outstanding in…