Capital National Bank v. Robinson

Citations

• 41 Wash. 454
• 83 P. 1021
• 1906 Wash. LEXIS 988

Syllabus

<p>Bills and Notes — Payment — What Constitutes — Deposit by Surety as Secukity bob Judgment Against Peincipal Makee — Contbacts — Consteuction. Payment of a promissory note by a joint maker •who claimed to have signed as surety only, is not shown where it appears that the surety, after giving notice to the bank of the suretyship, and requesting suit to be instituted against the principal maker, entered into a written agreement with the bank, and with its president acting as a trustee and not in his official capacity, under the terms of which the surety deposited with the trustee a sum sufficient to pay the note and costs of suit, to be held until final judgment against the principal maker, and the bank agreed to at once institute a suit thereon without making the surety a party defendant, the deposit to be returned in case of payment by the principal maker, and the judgment to be assigned to the surety if not paid; it being a prerequisite to the bank’s receiving the deposit that it should reduce the claim to judgment; and it being specifically stipulated that the transaction should not be considered a payment of the note, but that the deposit shall be held only as security for any judgment that might be obtained (Root, J., dissenting).</p>