Allen v. Coffil

Citations

• 42 Ill. 293

Syllabus

<p>1. Blank indobsement—character of liability assumed thereby. Though the rule he, that over an indorsement in blank, upon a promissory note, the holder may write a guaranty, if there be nothing to limit the undertaking, yet-in all such cases the contract written over the signature must be consistent with the nature of the instrument and the intention of the parties.</p> <p>2. So, where the holder of a note, which is signed by one as principal and by another as security, takes in payment thereof the note of a third party which the principal in the first note holds, with the indorsement thereon, first, of the name of such principal, and second, with the name of his security on the first note, and the latter makes his indorsement in blank, thus: “ A. B., as security,” his liability is not that of a guarantor, who would be primarily liable, but he is to be regarded as the security of the first indorser, who was the principal in the original note, and as such his undertaking is, simply, that such first indorser shall perform his obligation as an assignor.</p>