Skinner

Defendant appeals from a judgment in favor of plaintiff, upon a directed verdict, for money due on a promissory note.

On November 28, 1914, C. F. Fury, being at the time already indebted to plaintiff, borrowed from it the sum of five hundred dollars. He executed and delivered to it his promissory note for that amount. As collateral security for the payment of this note, for what he already owed, and for future advances, he transferred to the bank a claim, for the sum of four hundred dollars, held by himself against the Helling estate, and transferred to it by indorsement the note in suit, executed to Fury by defendant. This note was dated November 27, 1914, and was payable May 27, 1915.

Some time thereafter the Helling estate paid to the banker the sum of four hundred dollars, the amount of Fury’s claim against it. This money the bank applied on the Fury note for five hundred dollars, leaving a balance of one hundred dollars due thereon, for which Fury, at the time, executed a new note. The bank then canceled the five hundred dollar note, and credited it on the books of the bank as paid. It marked as “paid” and delivered the canceled five hundred dollar note to Fury.

Subsequent…