Rosenbaum v. Meridian National Bank

Citations

• 73 Miss. 267

Syllabus

<p>1. Application op Payment. Absence of agreement. Debtor may direct application.</p> <p>Where a bank has procured an attachment, and garnisheed the proceeds of fire insurance policies of its debtor to enforce the payment of certain promissory notes of the latter, held by it, among which is a note upon which third persons are liable as sureties or co-makers, and the debtor transfers to the bank some of the policies, in consideration of its release of the garnishment as to the others, and as collateral security for his entire indebtedness, the debtor, in the absence of any agreement as to the manner in which the proceeds of the policies so transferred shall be applied, may, after such transfer and before collection by the bank, and although then insolvent, direct their application to the payment of the note on which such third persons are liable.</p> <p>2. Same. Instructions.</p> <p>An instruction that is wholly unsupported by the evidence is misleading and erroneous, and one that makes the secret purpose of one party to a transaction, not induced by or made known to the other, a controlling factor in the controversy, is equally erroneous.</p>