United States v. William A. Sharp

The United States sued in the District Court on a promissory note executed by the appellee to Henry A. Petter Supply Co., under the terms of Title 1, of the National Housing Act, 12 U.S.C.A. § 1701 et seq. As authorized by the Act, payment of the note was insured or guaranteed by the Federal Housing Administrator. Petter, for value, endorsed the note to Commercial Credit Company, who became a holder in due course. Appellee failed to pay the note. Upon demand of Commercial Credit Company, the United States paid it off and thus became a holder in due course.

The appellee signed the note “Paducah Recreational Center by W. A. Sharp, Prop.” Before appellee executed the note, he filed an application on Federal Housing Administration form 1178a for credit and this form was signed in the same manner as the note.

Appellee contends, as he did in the court below, that he in fact executed the note in a representative capacity on behalf of Sharp’s Recreations, Inc., a corporation and that Paducah Recreational Center was merely the trade name of a bowling alley owned and operated by the corporation; further that he had also signed an application for credit on form 1178a on behalf of the…