Federal National Bank v. Cross Creek & Pittsburg Coal Co.

Citations

• 220 Pa. 39
• 68 A. 1018
• 1908 Pa. LEXIS 723

Syllabus

<p>Affidavit of defense — Promissory notes — Discount—Banks and banking —Practice, C. P.</p> <p>The agent of a corporation has no implied authority to bind the corporation by an accommodation indorsement.</p> <p>Where, in an action by a bank against a corporation on promissory notes on which the defendant’s name appeared as fourth indorser and in no other connection, the statement of claim avers that the notes were discounted by the plaintiff before maturity, and that the proceeds went to the parties to the notes, an affidavit of defense is sufficient to prevent judgment, which avers that the defendant’s name on the notes was only by way of accommodation indorsement, that the indorsement was the unauthorized act of defendant’s manager, and that the defendant never received any benefit or advantage from the discounting of the notes.</p>