Canadian Bank of Commerce v. Sesnon Co.

Citations

• 68 Wash. 434
• 123 P. 602
• 1912 Wash. LEXIS 1308

Syllabus

<p>Pledges — Letter op Hypothecation — Power to Sue — Construction. A general letter of hypothecation providing that securities are to be held by a bank as a general and continuing collateral security for the payment of present and future indebtedness and liability, and that the bank may realize thereon and deal with the same as it sees fit, authorizes the bank to bring suits and actions thereon.</p> <p>Bills and Notes — Payment—Evidence—Suppiciency. There is sufficient evidence that a note made by one corporation to another was paid, where it appears that after the close of a season in which they had extensive dealings, accounts between them were settled showing more than sufficient to satisfy the note, the correctness of the account, so far as material, not being questioned.</p> <p>Pledges — Release op Security — Authority op Pledgor to Collect —Evidence op Custom — Suppiciency. A custom between a bank and its hypothecator of securities, by which the latter was authorized to collect and give acquittances for any and all collateral pledged, is not proven by the fact that on three or four occasions such collections were made and the collateral afterwards released by the bank, where in all the cases but one, the release was upon payment of the face value to the bank, and in that one the release was made as an accommodation to a customer.</p> <p>Payment — Notes—Change in Form of Indebtedness. The fact that an overdraft at a bank was afterwards put into the form of negotiable promissory notes does not establish payment of the original indebtedness, which was secured by collateral.</p> <p>Bills and Notes — -Indorsement—Fob Collateral — Holder in Due Course — Rights. The indorsee of a note, indorsed for collateral security, although a holder in due course to the extent of his interests, cannot enforce the note in excess of the amount for which the note is security, where the maker has a defense against the original payee.</p> <p>Evidence — Best and Secondary Evidence- —