Farmers and Merchants Bank v. Universal C‪.‬

McDONOUGH, Chief Justice. In October, 1952, Universal C.I.T. Credit Corporation undertook to finance the operation of Harry Parsley, Inc., a Lincoln-Mercury dealer in Provo, Utah. Both retail and wholesale financing was provided for in the agreement between the dealer and the finance house, the arrangement being that the contract of sale for the automobile was to be enclosed and sealed in an envelope, the face of which was a sight draft on Universal C.I.T., and Harry Parsley was authorized to draw against that company in the amounts represented by the contracts. Respondent bank was authorized to treat these drafts as cash by a verbal agreement with appellant Universal C.I.T.