Sibley State Bank v. Exchange Nat. Bank

On March 10, 1923, the board of directors of the Sibley State Bank adopted a resolution authorizing its cashier to negotiate a loan from the Exchange National Bank, of Shreveport, and to pledge collateral necessary to secure said loan.

The cashier of the Sibley State Bank, acting by virtue of this authority, borrowed $2,000 on April 26, 1923, and $7,000 on May 9, 1923, executing as evidence thereof a note for 90 days and a note for 30 days respectively. These notes were secured by the delivery and pledge to the Exchange National Bank of certain bills receivable held by the Sibley State Bank.

On…