Commerce Trust Company v. Ronald Howard

The parties will be referred to as appellants and respondent. The respondent is a banking corporation organized and existing
under the laws of Missouri and authorized to do business in the State of Kansas. The appellants are residents of Pulaski County,
Missouri. The Overland Park Motor Center Company, Inc., is engaged in the business of buying, selling, financing and leasing
automobiles in Overland Park, Kansas. Mr. W. A. Morgan was the principal stockholder and manager of the Overland Park Motor Center Company, Inc. He and appellant
Howard had known each other all their lives. Mr. Howard was in the neon sign business in Greene County, Missouri, and adjoining
counties. The parties had not seen each other for several years and in 1963 or 1964, Mr. Morgan stopped to see Mr. Howard
while on his way to Kansas City to enter the automobile business. Later Mr. Morgan contacted Mr. Howard and he and Mr. Howard
went to respondent's bank and discussed with Mr. Osterman of the Installment Loan Department the question of the appellants'
signing a guaranty agreement for Mr. Morgan. Negotiations resulted in Mr. Kelly, the then manager of Installment Loan Department
of respondent, extending a line of credit to the company. Respondent was to make (1) floor plan financing of inventory, (2)
demonstrator car loans and (3) loans on leased vehicles.