Berkeley & Harrison v. Tinsley

Citations

• 88 Va. 1001
• 14 S.E. 842
• 1892 Va. LEXIS 62

Syllabus

<p>1. ^Negotiable Instruments — Accommodation indorser — Withdrawal of indorsement Exception. — It is a general principle that an indorser of an accommodation note may withdraw his endorsement at any time before the note is discounted, unless rights for valuable consideration have in the meantime attached in others.</p> <p>2. Idem — Rights of pledgees — Obligation of indorser. — But where such note has been pledged and delivered to a bank to secure collaterally its advancements made in good faith, the bank can recover against the indorser what was bona fide advanced by the holder, but the indorsers’ obligation is limitated to this.</p> <p>3. Idem — Case at bar.— Maker of note indorsed for his accommodation, unable to get it discounted, left it at the bank as collateral security for a loan for a much less sum by the bank. Maker then bought goods through B. & II. on the credit given him by the note. Accommodation indorsor offered to pay the loan and withdraw her indorsement, the note not having been -discounted. Bank refused, but assigned same to B, & H., the agents of maker’s creditors, upon their payment of said loan. In action by B. & II. upon the, note;</p> <p>Held :</p> <p>They could recover nothing more than the amount they paid on the loan to the maker.</p>