California Funding Corp. v. Long Beach National Bank

There is no dispute about the facts in this case.

Plaintiff corporation is in the business of financing purchases of motor vehicles, using conditional sales contracts. To secure funds for a part of its financing, plaintiff assigned conditional sales contracts to defendant hank on three occasions.

On the first occasion the bank agreed to pay plaintiff the total balance of the conditional sales contracts assigned to it, less 5 per cent to be placed in a reserve account for losses, and less 5 per cent per annum simple interest, prepaid to the bank.

On the second occasion the agreement was…