Steadman Credit Co. v. Wade

On March 9, 1945, appellee purchased an automobile from a dealer, giving him in addition to the down payment a promissory note for $610.80 payable in 12 monthly instalments of $50.90. The note was given not only to cover the unpaid purchase price, but also to cover the cost of the premium on insurance on the automobile for one year against loss by fire, theft and collision. To secure the note appellee gave the dealer a chattel mortgage. Then on the same or the following day, the dealer transferred the note and mortgage to appellant. Appellant paid the insurance premium, amounting to $27.52,…