First Nat. Bank of Aiken v. JL Mott Iron Works

Citations

• 258 U.S. 240
• 42 S. Ct. 286
• 66 L. Ed. 593
• 1922 U.S. LEXIS 2264

Syllabus

<p>A national bank, having advanced money to one who had ppntracted to supply labor and material, for a building, oh the security of his ■assignment of the contract and of payments to.be made Under it, guaranteed payment of goods afterwards sold to the contractor, on the faith of the guaranty, and used in the work. Held: (a) That whether or not the guaranty was valid as an incident of banking, the bank was liable to the seller, up to its amount, for moneys subsequently arising under the assigned contract which were paid to it or, with its consent; to the contractor; and (b) that, the case having been tried on its merits, the distinction between a recovery on {he guaranty and a recovery of {lie amount so directly or indirectly received on account of it; was purely formal. P. 241.</p>