Rhea Mortgage Co. v. Lemmerman

Plaintiff in error, in due course of trade, for a valuable consideration, acquired a promissory note executed by R. H. Pringle, payable to the order of the Pain-Bender Motor Company, a corporation; 'said note being secured by a chattel mortgage on an automobile.

It appears that the Pain-Bender Motor Company was engaged in the business of selling new and used automobiles in the city of Port Worth, and that it was the custom for this company to assign notes taken by it for deferred payments on automobiles sold to its customers to this mortgage company, together with the mortgages securing them,…