Vaughn v. Central State Bank

A. M. Vaughn sued the Central State Bank of Dallas to recover the value of a note deposited with it as collateral security, alleged to have been converted by defendant.

The material facts of the case are undisputed. Plaintiff owed the bank $1,000; evi-denced by a promissory note, due October 14, 1921, to secure the payment of which he deposited with defendant a note for $2,500, against Dan Harston. Plaintiff defaulted in the payment of his note, and after considerable effort on the part of the bank to collect from Vaughn and Harston, Mr. Harston, on December 16,1921, made payment to the bank…