Connor & Walker v. Donnell, Lawson & Co.

Citations

• 55 Tex. 167
• 1881 Tex. LEXIS 101

Syllabus

<p>1. Usury.— When a note is discounted at usurious rates for the payee thereof, who then indorses it, the defense of usury is available both for the maker and indorser; the note being accommodation paper, and assigned with notice of that fact.</p> <p>2. Same. —The defense of usury to a note which has been nsuriously discounted by the indorsee thereof, cannot be interposed by the maker in a suit by the indorsee, if the note, when in the hands of the payee, was supported by a sufficient consideration.</p> <p>3. Accommodation paper.—An accommodation note, wherever dated, signed and indorsed, .takes effect, and in law is regarded as made, when and where it is actually delivered and negotiated.</p> <p>4. Usury.—Whether a note be usurious or not must be determined by considering the laws of the state in which it is made payable.</p> <p>5. Usury.—A note was given in renewal of a like note which had been executed for the accommodation of the president of a bank, and was made payable to its order; the former note was discounted by the bank for the president, and thereafter was discounted for the bank in New York at usurious rates. In a suit on the renewal note, held, that the renewed note, like the original, would be in the hands of the bank a valid note, and not as a note made for the accommodation of the bank, and would therefore, like the original, bind the maker when sued by the indorsee, notwithstanding the usurious indorsement; and this although there was no fresh discounting of the new note by the bank, and although the new note may have been obtained by the president with a view to its being indorsed by the bank and discounted by the plaintiff,</p> <p>6. Pleading—Fact case, — See opinion for pleas of usury in a suit brought by an indorsee on accommodation paper, held defective,</p>