Commercial Credit Corp. v. Citizens & Southern National Bank

Grumbine, a merchant doing business as the Guyton Motor Company, in order to secure a debt executed to the Citizens & Southern Bank a bill of sale to the automobile in question. The paper was duly recorded. The bank knew Guyton was a dealer in automobiles and that the automobile would be sold in the regular course of trade. Thereafter Archer, a bona fide purchaser, bought the automobile from Grumbine in due course of trade, paid part of the purchase-price down and gave a conditional bill of sale to secure the balance. Grumbine transferred this conditional-sale contract to the Commercial…