Alldred's Estate

Citations

• 229 Pa. 627

Syllabus

<p>Promissory notes — -Indorsement-—Indemnification of indorsers — Notice of protest — Corporations.</p> <p>1. Where the directors of a corporation indorse the promissory notes of the company for the benefit of the company, and thereafter accept the benefit of a deed of trust of all of the property of the company executed for the sole purpose of indemnifying them against loss by reason of their indorsement, the directors become principals and cannot rely as a defense against the payment of the notes, on the fact of nonpresentment and the lack of notice of dishonor.</p> <p>Promissory notes — Indorsement — Irregular indorsement■— Act of May 16, 1901, P. L. 194.</p> <p>2. Under the Act of May 16, 1901, sec. 64, P. L. 194, a person not otherwise a party, who places his signature in blank, before delivery, on a promissory note payable to the order of a third party becomes liable as indorser to the payee and all subsequent parties. Prior to the act, the indorsement of such person would have been irregular and he would not have been liable to the payee.</p>