The Corning Bank Trust Co. v. Foster

In 1923 Arthur D. Foster, the appellee, took out a policy on his life for the sum of $5,000. The policy carried a disability clause, and was made payable on the death of appellee to his executors, administrators or assigns.

The appellee became indebted to Dr. S. P. Black-wood, and on June 1, 1926, and also on July 10, 1926, executed unconditional assignments. On August 2,1926, Blackwood assigned the policy to the First National Bank of Corning to secure an indebtedness of approximately $4,500' and any other indebtedness which he might owe.

Foster became disabled within the terms of the policy,…