Farmers' & Drovers' Bank v. Bashor

Citations

• 98 Kan. 729
• 160 P. 208
• 1916 Kan. LEXIS 177

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — Transferred by Indorsement — Guaranteeing Payment — Payee Secondarily Liable. The payee of a note who transfers it by an indorsement guaranteéing payment becomes secondarily liable within the meaning of section 127 of the negotiable instruments act (Gen. Stat. 1909, § 5373).</p> <p>2. Same — Extension of Time — Release of Person Secondarily Liable. A person secondarily liable is discharged by any agreement binding on the holder to extend the time of payment unless the agreement be made with such person’s assent or unless recourse against him be expressly reserved. (Negotiable Instruments Act, § 127, Gen. Stat. 1909, § 5373.)</p> <p>3. Same — Extension of Note — Meaning of “Assent.” Assent as used in section 127 of the negotiable instruments act (Gen. Stat. 1909, §6373) means concurrence in the agreement to extend the time of payment when made. Without such assent an agreement to' extend time of payment ipso facto discharges the person secondarily liable.</p> <p>4. Same — Knowledge of Extension — Does Not Imply “Assent.” Knowledge of an extension does not alone constitute assent, and it is not necessary that an extension be expressly objected to to entitle a person secondarily liable to his discharge.</p> <p>5. Same — Release by Extension of Time — Revival of Liability. After a person secondarily liable has been discharged by an extension made without his assent his liability can be revived only by virtue of a new contract or by virtue of. conduct creating estoppel.</p>