Ellis v. Citizens' National Bank

Citations

• 25 N.M. 319
• 183 P. 34

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. A contract of guaranty of the paper of a third person to which a national bank holds no title, and concerning which the contract of guaranty is not necessary or incidental to the transfer of title to the instrument, .and the loan is for the benefit of a third person, is beyond the power of the bank, as conferred by the National Bank Act, is ultra vires, and no suit can be maintained upon any such guaranty, and in no case is the bank estopped from pleading ultra vires of such a contract! P. 322</p> <p>2. A national bank, however, has the power to borrow money, and to issue evidence of indebtedness therefor, and where a bank puts forward a third party as a borrower, and the bank guarantees the repayment of the loan, and all the proceeds of the loan go to the bank, and are converted to its own use, such contract of guaranty is not ultra vires, and suit can be maintained upon the contract. P. 323</p> <p>3. On appeal, a party must present all questions in his original brief which he desires the court to consider, and he will not be permitted to present new points in a petition for rehearing. P. 327</p>