Federal Land Bank v. First Nat. Bank

BROWN, Justice.

The ( appellee, The First National Bank of Scottsboro, was one of the payees named in the check issued by appellant in consummation of the loan to Whatley, to discharge, among other debts, his indebtedness to the complainant secured by first mortgage, and his indebtedness to appellee secured by a second mortgage. This check was, in due course, delivered to the Scottsboro National Farm Loan Association of Jackson County, through whom the application for the loan was made, for the purpose of distributing the proceeds of the loan in accordance with the application.

The check…