Pacific Finance Corp. v. Bank of Yolo

This cause arises out of two so-called “flooring” transactions between plaintiff finance corporation and one J. T. Hendley, an automobile dealer at Woodland. Defendant was drawn into the transactions by cashing two drafts and crediting to the account of Hendley the proceeds thereof. Both drafts were drawn by plaintiff’s Sacramento office upon its Los Angeles office, the first on February 2, 1928, for $4,610, the second on March 5, 1928, for $2,323.51; both were made payable to defendant bank and both contained in the body thereof the following recital: “In payment Sight Draft Automobiles…