First National Bank v. Livermore

Citations

• 90 Kan. 395
• 133 P. 734
• 1913 Kan. LEXIS 226

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — Extension by Bank Cashier — New Security —Release of Sureties. It is assumed, but not decided, that a cashier has authority, in virtue of his office, to extend the time of payment of a note belonging to the bank, even if sureties are thereby released, where new security • is taken.</p> <p>2. New Note= — Presumed to Suspend Time of Payment of i Old Note. Where a new note, payable at a future date, is taken for the same debt evidenced by a past due note, which is not surrendered, the parties are presumed to intend that action on the old note shall be suspended until the maturity of the new one, in the absence of anything to indicate a contrary intention.</p> <p>3. - Stockholder Signing Note of Corporation Not Released by Extension. Where one of the principal stockholders, who is also a director, signs a note with the corporation, given to raise money for its benefit, intending to be bound only as a surety, he is not entitled to the same liberality of treatment that the law accords to volunteer sureties; and ■ where the corporation is granted a valid extension of time, without his knowledge, he is not thereby released from liability unless he suffers some injury therefrom.</p>