Ragin v. State

Chattel Mortgages — Filing — Constructive Notice — Banks and Banking — Deposit to Credit of Debtor of Bank — Application to Satisfaction of Debt — When Permissible — Non-suit — When Proper. Chattel Mortgages — Filing — Constructive Notice to Whom. 1. The filing of a chattel mortgage imparts notice to those creditors of the mortgagor only, within the meaning of section 8279, Revised Codes, who are seeking to enforce their claims against the mortgaged property, not to those who are not. Banks and Banking — Chattel Mortgages — Proceeds — Deposit to Credit of Debtor of Bank Without Instructions — Bank may Apply to Satisfaction of Debt, When. 2. Where money is deposited in a bank to the credit of one of its debtors, without an express agreement to the contrary or direction to apply it to a specific purpose, the bank may apply the deposit to the satisfaction of the debt; the rule applying where the deposit consists of the proceeds from the sale of the mortgaged property, in the absence of direction as to its disposition and of knowledge in the bank of their origin or of anothers claim thereto. Same — Case at Bar. 3. In an action by a mortgagee against a bank to recover the proceeds of a sale of mortgaged cattle deposited in the bank by the agent of the mortgagor who was indebted to it, and applied by it to the satisfaction of the latters past-due note, the deposit having been made without direction as to its disposition, held, that conceding that the bank had knowledge of the mortgage, the evidence as to its knowledge of the origin of the money did no more than give rise to a conjecture that it came from the sale of cattle and that there was a possibility that such cattle might have been mortgaged was insufficient to submit to the jury and that therefore a non-suit was properly granted. Page 390 Trial — Non-suit — When Proper. 4. Where plaintiff fails to produce such evidence in support of a vital issue in his case as to enable the jury to arrive at a reasonably reliable conclusion, or produces evidence so unsubstantial that the court would feel bound to set the verdict rendered aside, a non-suit should be granted.