Avirett v. Barnhart

Citations

• 86 Md. 545
• 39 A. 532
• 1898 Md. LEXIS 18

Syllabus

<p>Alteration of Promissory Note—Postponement of Time of Maturity— Assignment of Note and Mortgage After Part Payment Thereof— Estoppel.</p> <p>A change in the time of maturity of a promissory note made by the holder without the consent of the maker is a material alteration which avoids it.</p> <p>The holder of a chattel mortgage, and of a promissory note secured by it, received certain payments on account of the indebtedness and promised to extend the time of payment for one year. He did not endorse the payments on the note, but did endorse thereon an extension of the time of payment for a longer period than one year without the knowledge of the maker and subsequently assigned the note and mortgage to a party who took the same as collateral secu rity for an existing indebtedness. Upon a bill for the sale of the property mortgaged to enforce payment of the note, Held,,</p> <p>1st. That the assignee having taken the note after the date of its original maturity and after it had been avoided by a material alteration was not entitled to enforce the same against the maker, and that the assignment of the mortgage was made subject to the equities it was liable to in the hands of the assignor, and that the mortgagor is entitled to a credit for the sums paid by him to the assignor on account of the indebtedness.</p> <p>2nd. That the mortgagor was not estopped from claiming a deduction on account of such payments, merely because he failed to have the same endorsed on the note while it was in his possession, when the assignee was not misled by any act or representation of the mortagor.</p> <p>When a mortgage is assigned without the concurrence of the mortagor, the assignee takes the same subject to the same equities and defences to which it was subject in the hands of the assignor.</p>