Gay v. First Nat. Bank

On August 7, 1929, appellants indorsed a. six hundred dollar note. The money was to be used in the purchase of a small tract of timber. Appellants aver that there was an agreement with the bank and the maker of the note, as a condition of the indorsement, that the lumber coming from the timber should be invoiced through the bank and that the bank would deduct forty per cent of the net amounts and place the same to the credit of a stumpage account to be applied to the liquidation of the note. Appellants aver and show that in March, 1930, sufficient had been collected by the hank through the…