Bailey v. Clarinda Trust & Savings Bank

This action was originally commenced against the Clarinda Trust & Savings Bank; but before the case was tried, the bank became insolvent, and the receiver is made party to the action.

Appellant, Bailey, had been the patron of the said bank for many years. He was engaged in a business in which he took promissory notes from his patrons. He usually sold such notes to the bank, or borrowed from the bank and used the promissory notes as security. At one time he cleared up his indebtedness with the bank by giving them a mortgage for $10,000 on his equity in a Kansas City hotel. Subsequently thereto,…