Third National Bank v. Capitol Records, Inc.

This suit was brought by the complainant bank to recover from defendant the sum of $4,000.00 loaned by it to one Robert E. Moncrief, a country and western singer and guitarist using the stage name of “Bobby Edwards.”

Before making a loan to Moncrief, the complainant investigated the credit standing of Moncrief and found that his credit standing was not such as would justify making such a loan without requiring some security.

In response to a request for security, Moncrief offered to assign royalties earned by him pursuant to a certain recording and royalty contract made and entered into by and…