Blatchford v. Milliken

Citations

• 35 Ill. 434

Syllabus

<p>1. Promissory notes — indorsements in blank—whether a guaranty or asimple indorsement. A person who is not a party to a promissory note which is to become a valid obligation against the maker upon its delivery to the payee, by writing his name in blank upon the back of the note, is presumed to assent to the obligation of a guarantor.</p> <p>2. But where the note creates no valid obligation against the maker, and can create none, until it is indorsed and transferred by the payee, the presumption is, that a person writing his name in blank upon the back of the note assumes the obligation of an indorser.</p> <p>3. Inasmuch as a note made payable to the order of the maker can never have any validity until the name of the payee appears upon it as an indorser, the person writing his name in blank upon it before it is thus indorsed undertakes that when the note takes effect his name will appear upon it as second indorser.</p> <p>4. Assignee—must take notice of the legal effect of indorsements. All persons receiving a note thus payable and so indorsed, are apprized of the apparent obligations of the indorsers, and if they rely upon any other obligation, it is their duty to ascertain whether it exists. If an agreement is written over a signature, inconsistent with the intention of the parties as presumed from the nature of the instrument, and an indorsement in blank, it is the duty of persons receiving the note to ascertain how and by what authority it was written there.</p> <p>5. Blank indorsements — how they may be filled up. An authority to fill out an undertaking over a signature is to be exercised consistently with the nature of the instrument and the intentions of the parties.</p>