City Bank of York v. Rieker

Citations

• 262 Pa. 28
• 104 A. 804
• 1918 Pa. LEXIS 581

Syllabus

<p>Collateral security — Duty of holder — Supine negligence — Overdue indebtedness — Debtor's request to convert to- other security— Refusal..</p> <p>1. A holder of collateral security must exercise due care there-over, and will he held liable if loss results, from his supine negligence.</p> <p>2. But if the collateral security consists of an indebtedness which was overdue when he received it, he is not required, at the request of his debtor, to convert it into some other kind of security; especially if it would be expensive so to do.</p> <p>3. Under such circumstances the debtor’s only right is to pay the debt and receive back the collateral.</p>