Industrial Finance Corp. v. Capplemann

WOODS, Circuit Judge.

In February, 1921, Burns Motor Company, automobile dealers in Columbia, S. C., purchased from Studebaker Corporation six motor cars for cash, paid in this manner: On arrival of bill of lading and sight draft of the Studebaker Corporation, Burns *9Motor Company paid the Bank of Columbia 20 per cent, of the purchase price, and accepted a draft payable at a future day, drawn on it by the Industrial Finance Corporation, for the remaining 80 per cent. With this acceptance the Bums Motor Company executed a “trust receipt” for the bill of lading in these terms:

“In consideration…