Farmers' etc. N. Bank v. Braden

Citations

• 145 Pa. 473
• 22 A. 1045
• 1891 Pa. LEXIS 685

Syllabus

<p>(a) One who was a director and also an officer of a bank, having overdrawn his account with the bank, procured certain persons to become sureties on his note. The note was then discounted by the bank in the usual course of business, and the proceeds of it used in making good the overdrafts:</p> <p>1. The bank was not bound to communicate to the sureties the state of the principal’s accounts, or his financial condition if known. The bank and the principal, however, supposing at the time that the latter was solvent, and nothing being done by the bank to deceive the sureties, they could not resist payment, though in fact the principal was insolvent.</p>