Citizens National Bank v. Texas & Pacific Railway Co.

R. H. Locke was desirous of entering into a construction contract with the Texas & Pacific Railway Company. Lacking funds with which to finance such contemplated contract, Locke applied to the Citizens National -Bank in Abilene, Texas, for a line of credit. The Bank agreed to extend the credit, provided Locke would deliver to it as security an assignment of all funds accruing to him under the contract with the Railway. This was agreeable to Locke, and the matter was presented to the Railway. The two contracts were then prepared; — one the contract between the Railway and Locke, and the other…