Fulton National Bank v. Willis Denney Ford, Inc.

Carley, Judge.

In 1966 appellant-Fulton National Bank (Bank) entered into a loan agreement with appellee-Willis Denney Ford, Inc. (WDF). The agreement contemplated the financing of WDF’s automobile inventory through a floor plan arrangement. WDF purchased automobiles from Ford Motor Company. When an automobile was delivered to WDF, Ford presented a sight draft to the Bank for payment. The Bank paid the sight draft and WDF in turn executed a demand promissory note in that amount to the Bank and a security agreement in favor of the Bank covering the automobile. When WDF sold the automobile, it…