Farmers Union Agr. Cr. Corp. v. Northwest Security National Bank

Defendant is a ¡banking- corporation doing business in 'Sioux Falls. Plaintiff is engaged in making and negotiating livestock loans. On-or about the 15th day of November, 1936, Chas. Bollinger made application to plaintiff for a loan of $7300 and offered as security for such loan a chattel mortgage on 200 head of steers that Bollinger pretended to be buying from one H. Arneson.

At the time of the application plaintiff had on deposit in defendant’s bank a sum of money equal to the amount applied for. The application was approved and plaintiff drew a check against the defendant bank for $7300…