Coffey v. . Reinhardt

Citations

• 19 S.E. 370
• 114 N.C. 509

Syllabus

<p>Surety — Purchaser of Note Without Notice of Suretyship— Effect of Notice Subsequently Acquired — Statute of Limitations.</p> <p>1. The lapse of three years protects the surety on a sealed instrument.</p> <p>2. Although a bond is joint and several on its face the suretyship of an obligor may be shown by parol, but to obtain protection by the lapse of three years the surety must show that his relation was known to the creditor.</p> <p>3. If the suretyship of the surety is known.to the original payee and the note be assigned after maturity the surety will be protected by the lapse of three years after maturity, although the assignee takes without notice; otherwise if the note be assigned before maturity to one without notice.</p> <p>4.- If the purchaser of a note before maturity, for value and without notice, subsequently receives notice that a party thereto is a surety and delays action for three years after maturity the surety will be protected by the three years’ statute of limitations.</p> <p>Shepherd, C. J., dissents, arguendo.</p>