Williams v. First National Bank

The appellants C. L. Williams and Mina W. Williams are husband and wife. On and prior to January 29, 1917, one M. D. Goodbody was indebted to respondent The American National Bank of San Diego (hereafter for convenience called the American Bank), of which appellant C. L. Williams was vice-president and chief executive, in amounts aggregating $70,000, for which it held promissory notes signed by Goodbody, or by one Charles K. Yoorhees, who had charge of Goodbody’s financial affairs; the American Bank was not authorized to carry an obligation of any firm or individual in such a large amount, and Williams was required by the bank to curtail Goodbody’s loans, whereupon Williams negotiated with the Security Commercial and Savings Bank of San Diego (hereafter called the Security Bank), to take up two of Goodbody’s notes, amounting to $10,000, for which Williams received from the Security Bank, and delivered to the American Bank, a cashier’s check, and Goodbody executed and delivered to the Security Bank his promissory note for $10,000 ; Williams and Yoorhees executed and deposited with the latter bank their notes for $10,000 and $3,000, respectively, as collateral security for…