Farmers & Merchants State Bank v. Perry

The defendant was the prime mover in the organization of the association, and its promoter. He was also a subscriber to the capital stock of the association. The execution of the note was merely a part of the financial scheme. As part owner of the hotel property, Amundson in securing this note represented his individual interests. The defendant, by executing the note with the conditional agreement, attempted to serve his own personal interest, which afforded an opportunity to be released from his liability on his subscription. Under such circumstances the knowledge of Amundson and that of the…