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MCMASTER'S COMMERCIAL DECISIONS
BANKER AND MERCHANT
FROM THE reports of the HIGHEST COURTS OF THE SEVERAL STATES.
J. S. MCMASTER,
EXAMINER N. Y STATE BANK DEPARTMENT
A bank in Missouri in answer to a
M executed and delivered his prom-
Jersey. Amy Kellogg, the defend-
ACCORD AND SATISFACTION:
Certain payments in discharge of a
debt for a greater amount, held to
Where the right to contract involves
ACT OF MORTGAGEE:
ACT OF MORTAGEE - Continued.
mortgaged property in the possession of the mortgagee is levied on and sold under an execution against the mortgagor, the sheriff having required indemnity bonds before he would levy and sell. 273a.
Where by the Civil Code, section 22232224, of California, a bank becomes the involuntary trustee for the sum of $1,893.56, a deposit, the property of decedent's estate, the administrator of said estate cannot release the bank from its relation and responsibility as trustee. 230a, No. 926, p. 345.
A son held a note made by his mother for $700, secured by mortgage. He requested one Fisher to bring to him the note and mortgage and arrange to have them withdrawn so that property will be clear. The son indorsed on the face of the note the words "Paid L. F. Wittman, 4-1099." Immediately afterward the son died, and Fisher subsequently delivered the papers to the mother. Held, that the note and mortgage were not properly discharged, nor was there a gift of them to the mother, but they were enforceable against her. 75a, No. 869, p. 65. The right of a purchaser from a drummer to countermand the order so given. Authority of drummer in such cases. No. 866, p. 51. Where the owner of a note for $2,600, duly indorsed, deposited the same for safe keeping with a third party, and such third party wrongfully sold the note for $2,000, and did not account to the owner for any part thereof, held, that such purchaser thereby obtained an interest in the note to the extent of $2,000. 51a, No. 863, p. 40.
Certain note secured by mortgage was paid by the maker to the payee after the payee had transferred it to the third party, who at all times retained possession of it. Held, that the note and mortgage were to be read together as one instrument; that non-negotiable clauses in the mortgage made the note non-negotiable; that recording of the assignment on the mortgage was, in this instance, notice to the maker that the payee was not the owner of the note nor the proper person to receive payment and discharge the mortgage. 58a.
An investment company, the payee of a note with interest coupons attached, indorsed it to a third party, who retained the securities in her possession. The payor of the note paid the interest then due to the company, and received later the coupon interest note. He at the same time paid the company the principal of the note which it retained, the owner of the note receiving no part of it. Held, that the owner of the note and mortgagee could enforce them. 74a, No. 870, p. 67. A corporation sent its note to an agent, requesting him to have it discounted for the benefit of the corporation and the proceeds remitted to it. The agent stated these facts to a bank and requested the bank to discount the note, which the bank declined to do. Subsequently the agent represented to the bank that he was the owner of the note, and it discounted the note for him individually and allowed him to use the proceeds for his own benefit. Held, that as against the makers of the note the bank was not a holder in due course, and that the bank could not collect of the makers. 9a.
Cashier of bank held not to have power to bind the bank and thus release an indorser on a note by extending the time of the payment of the note to the maker. 19a.
In an action by plaintiffs on the guaranty of defendant this authority to purchase was proved, “I give permission to my son to buy goods for $50 on the terms of thirty days on my name and the bill to be sent to me." Held, that the guaranty was for a single purchase. 201a.
Where an agent of a corporation exceeded his authority in contracting for his principal, if the latter on learning of the terms of the agreement promptly repudiated it, the company is not liable. 166a, No. 911, p. 275.
A renewal promissory note indorsed for accommodation of maker by Mrs. G was after such indorsement altered by changing the name of one payee for another and the striking out of the word "jointly." Held, that under the Negotiable Instruments Law, she was not liable on the note. 207a, No. 914, p. 289
The striking out of the words "Notice of such option being hereby expressly waived" and "Without any notice whatever" in a clause, stating that upon a failure to pay the interest the principal sum should become due in a promissory note after execution and delivery, held, to con stitute a material alteration. 1992. In an action on a promissory note the defense set up by the makers was a material change of the terms of the contract, after signing and before purchase by the plaintiff. The trial court charged that the burden of proof is on the defendant to show that plaintiff did not purIchase the note in good faith." Held error. 89a, No. 879, p. 120. In an action by the holder of a promissory note, in due course, defendant and indorser claimed that a material alteration made by maker on face of note after indorser signed released him. Note was made and discounted in one State, indorsed in another. Held, that law of State where indorsed governed, and as Negotiable Instruments Law prevailed there indorser was not released. rora. Certain irregular indorser of a note held, under the negotiable instruments law, to be a strict indorser, and under the provisions of the same law the holder of the note could enforce it according to its original tenor, although, without the holder's knowledge or consent, the maker has materially altered it after it was indorsed. 47a.
APPARENT MAKER - Continued.
of another note on which they were indorsers. Held, that defendants having been accommodation indorsers on first note become only sureties of the note in suit. 205a.
B. guaranteed the account of A. to a company. The company addressed a letter to Beall, which he received, notifying him that at the request of the debtor it would extend the time of the payment of the account by accepting the debtor's note for thirty days. To this letter B. did not reply. Held, that B. was released as guarantor. 5a, No. 855, P. I.
In an action to enforce payment of a non-negotiable note, where it appears that the makers had neither actual nor constructive notice of the assignment of the paper, held, that proof of payment of the note to the payee is an absolute defense. 185a. Where there was evidence showing the debtor's insolvency and a knowledge of the same by the bank to whom he had made assignments of his outstanding accounts, the trustee in bankruptcy could recover SO much of the bank's collection from transfer
made within four months, as had been applied to the payment of the indebtedness due it at the time the arrangement was made with the bankrupt for the assignment of the accounts, but could not recover so much of the fund as had been ap-. plied by the bank to the payment of the bankrupt's liabilities third persons. No. 905, p. 244. One Tolman bought of Warner a bond and mortgage on real estate. Tolman took the mortgage but Warner never delivered the bond. Subsequently, and long before Tolman recorded his assignment of the mortgage, Warner sold the same bond and mortgage to the Syracuse Savings Bank. Warner delivered the bond to the bank but never delivered the mortgage. Held, on appeal, that Tolman held lien prior to the bank. 110a, No. 888, p. 169. T. gave his promissory note to plaintiff, a life insurance corporation, for a loan and assigned a paid-up life policy, in which his wife and children were named as beneficiaries,