Farmers National Bank v. Peoples National Bank

Citations

• 263 Pa. 266
• 106 A. 311
• 4 A.L.R. 531
• 1919 Pa. LEXIS 414

Syllabus

<p>Promissory notes — Negotiable instruments — Dishonor — Notice to endorsers — Duty of bank forwarding note for collection.</p> <p>1. A bank receiving a note for collection which it forwards to its own correspondent, owes no duty to see that the endorsers receive notice of protest in the absence of special agreement or special instructions to forward the notice, if the holder receives notice of the dishonor and protest of the note.</p> <p>2. A bank receiving a note for collection which it forwards to its own correspondent incurs no liability to the holder for failure to notify an endorser of dishonor and protest of the note, merely because the notice of protest to the endorser was forwarded to it, and it failed to notify the holder that the notice had not been forwarded to the endorser, where the holder was advised in the notice of protest received by it that the notice for the endorser had been forwarded to the bank.</p> <p>3. In such case it was the duty of the holder to communicate with the bank to ascertain whether it had the address of the endorser and had forwarded the notice, or it should have forwarded the notice of protest to the endorser himself.</p>