Karnes v. Gentry

November 1,1932, appellant, A. B.. Karnes, borrowed $1,100 from the First State Bank of Eureka Springs, Arkansas, gave his note therefor and executed a chattel mortgage on 56 cattle, 3 horsed, 12 hogs and 30 sheep, as security. Thereafter the bank became insolvent, was taken over by the State Bank Commissioner, and on March 3,1933, E. C. Pickens was placed in charge as liquidating agent.

The following payments were credited on the note: “12-2-32, $25; 2-6-33, $88.62; 8-18-34, $375.25; 12-2-33, $7.33.”

Appellee, Raymond Gentry, became the owner of the note January 19, 1938, and May 19, 1938,…