Smith v. Vaughan

It may be conceded that, when a note is a lien on cotton, or other property, and the property is delivered to the payee, it is his duty, in the absence of instructions or an agreement, to apply the proceeds of its sale to the payment of the note. The obligations given by the defendant (Smith) to *202Gamble are- for cotton, as the consideration price of lands. Whilst Gamble has a lien on the lands for the purchase-money, he has none on any cotton.' The rules applicable to the deliveries of cotton in this case are the same as to general payments, where the debtor owes two or more debts to the s'ame…