Estate of Bishop

Citations

• 195 Pa. 85
• 45 A. 582
• 1900 Pa. LEXIS 588

Syllabus

<p>Promissory notes—Accommodation note—Indorser—Extension of time— Pelease of indorser.</p> <p>Where the maker of a note to the order of an accommodation indorser subsequenily gives to the creditor his personal judgment note, and agrees in writing that the previous note shall be held as collateral security for the payment of the judgment note, a payment of the judgment nóte extinguishes the liability of the accommodation indorser. If the creditor in accepting the judgment note extends the time of payment without the knowledge of the indorser, the indorser is released.</p> <p>Where the holder of a bill or note by a valid agreement based on a valuable consideration, grants an extension for a definite time to the principal, without- the surety’s consent, and without any reservation of his rights against the surety, unless the surety will be discharged unless he is otherwise secured.</p>