Murchison Nat. Bank v. Grissom

NORTHCOTT, Circuit Judge.

The appellant is a national bank organized under the laws of the United States, having its principal office at Wilmington, N. C. During the year 1920, N. P. Sloan & Company, engaged in the cotton business, failed. The company was indebted to appellant at the close of that year in the sum of $91,492.92 on account of loans made to it, against which the bank held as security, cotton in storage, having an estimated value, based upon market quotations, of $30,000. The bank charged off as a bad debt at the end of 1920, $61,492.92, the amount of the loan in excess of the…