Fidelity National Bank v. E. H. Stanton Co.

Citations

• 93 Wash. 344

Syllabus

<p>Bills and Notes — Liability of Indorsees — Previous Agreement ■ — Mode of Payment — Frauds, Statute of — Evidence—Parol to Vary Writing. Regular indorsers of a mortgage note, negotiable on its face, warrant the genuineness of the instrument, the title, the capacity of all prior parties to contract and that the instrument was valid and subsisting at the time, and in addition engage to pay on notice of dishonor; and, therefore, they cannot avail themselves of a prior agreement by an indorser to accept in payment a quitclaim deed of the mortgaged property; since (1) such agreement if existent, is superseded by the indorsement, and (2) the indorsement cannot be varied or altered by a contemporaneous oral agreement, void under the statute of frauds.</p> <p>Mortgages — Payment — Agreement to Accept Property — Contract by Subsequent Purchasers. An agreement with purchasers of mortgaged property who had not assumed the debt to dismiss a foreclosure suit, in consideration of an agreement to quitclaim the land if delinquent interest was not paid within a certain time, is not an agreement to accept payment in land that would discharge the note as to the makers and indorsers; and being made with a stranger to the obligation does not imply such an agreement.</p> <p>Same. A quitclaim deed of mortgaged premises tendered to the holder of the note pursuant to an agreement with an indorser is not accepted by the holder so as to release indorsers and discharge the obligation, where the holder returned it stating it should be made in blank, the holder expecting to turn it over to the indorser under the belief that he would pay the note and accept the deed.</p>