Allentown National Bank v. Clay Product Supply Co.

Citations

• 217 Pa. 128
• 66 A. 252
• 1907 Pa. LEXIS 669

Syllabus

<p>Promissory notes — Indorsement—Holder for value — Holder in due course.</p> <p>Where a bank accepts from one of its debtors a promissory note on which the debtor is second indorser, and on receipt of the note extends time to the debtor, applies the proceeds of the note as a credit to the debtor’s account, and receipts and relinquishes bills of shipment pledged as collateral, and there is nothing to connect the bank with anything that took place 'between the original parties to the note, the bank is not only a holder for value, but a holder without any notice of infirmity in the instrument, or any right of set-off in connection therewith, and is therefore a holder in due course.</p> <p>Promissory notes — Renewal note — Possession and use of renewal note.</p> <p>Where a bank has positively refused to accept a renewal note, it cannot subsequently be held to have accepted the note merely because when it wanted to make a demand on. the original note, it procured the renewal note to attach it to the original, so that both could be restored to the maker on payment.</p>