Empire National Bank v. High Grade Oil Refining Co.

Citations

• 260 Pa. 255
• 103 A. 602
• 1918 Pa. LEXIS 501

Syllabus

<p>Negotiable instruments — Promissory notes — Time of payment— Collateral notes — Bight to call for additional security — Collateral subject to other indebtedness — Bale of collateral — Notice of sale.</p> <p>1. The fact that a promissory note, otherwise negotiable, contains an independent contract by which the holder has the right to call for security, and provides that, on the failure to respond, the obligation shall be deemed to be due and payable, does not make the time of payment so uncertain as to destroy the negotiability of the note.</p> <p>2. A contract in a promissory note making collateral subject to the payment of other indebtedness, besides the one for which the collateral was particularly pledged, is a valid agreement, and it follows that the right to sell the collateral for the nonpayment of the other indebtedness is equally as valid, and does not destroy the negotiability of the note.</p> <p>3. Where a collateral note provided that the collateral might be sold without notice, at public or private sale, and upon default in the payment thereof the collateral was sold by the holder after a letter had been written notifying the pledgor of the contemplated sale, which in the ordinary course of business would have been received in time to enable the pledgor to protect the collateral, the pledgor was in no position to complain that the letter was not properly addressed especially where it appeared that it had been addressed as other communications directed to and received by the pledgor had been addressed.</p> <p>4. In an action on a promissory note executed and endorsed by a corporation, providing “Eour months after date, for value received, we promise to pay to the order of ourselves four thousand dollars having deposited herewith as collateral security for payment of this or any other liability or liabilities of the undersigned to the holder hereof, now due or to become due, or that may be hereafter contracted, the following property, viz: Eour thousand