California National Bank v. Ginty

Citations

• 108 Cal. 148
• 41 P. 38
• 1895 Cal. LEXIS 837

Syllabus

<p>Promissory Note—Principal and Surety.—One who signs a promissory note as a principal is liable as such to the payee, notwithstanding the latter knew that as between the one thus signing and the principal debtor the former was in fact only a surety.</p> <p>Id.—National Bank—Rate of Interest. — Under section 5197 of the United States Revised Statutes, and section 1918 of the Code of Civil Procedure, a national bank situated and doing business in this state is authorized to charge and receive such rate of interest as may be agreed upon. ■</p> <p>Debtor and Creditor — Collateral Security—Application of Security.—Where a creditor holds two notes or obligations, one better secured than the other, and has collateral security for both alike, he has a right, in the absence of any modifying agreement, to have the collateral applied upon the obligation which is most precarious by reason of being least secured.</p> <p>Id.—Renewal of Obligation.—Certain property was pledged for the security of a debt evidenced by a note signed by three persons as principals. Subsequently a part payment of the debt was made, and for the balance two notes were given, one of which was signed by all of the parties to the original note and the other by only one of them. After the first delivery of the property in pledge no change was made by the parties as to the purposes or conditions upon which it was pledged. Held, That the pledged property should be applied to the payment of the note having the single maker, and that the right of the payee of the notes to such application was not affected by the fact that, as between themselves, two of the makers of the first note were sureties for the other, and that the pledge was intended to be security for their protection as such sureties.</p> <p>Practice—New Trial—Jüdgmekt. —A motion for a new trial is not necessary to review an objection to a judgment which appears upon the face of the findings.</p>