First National Bank v. McNeelis

Citations

• 37 Pa. Super. 84
• 1908 Pa. Super. LEXIS 245

Syllabus

<p>Contract — Assignment of bonds — Payment—Collateral security.</p> <p>Whether an assignment of bonds is in payment or as collateral security is a question of intention, depending upon the testimony in the particular case. In the absence of evidence tending to show an intention to pay and receive the securities assigned as satisfaction of the debt, in whole or in part, the law presumes that they were assigned only as collateral. The duty of establishing the contrary is affirmative and it rests upon the debtor. If he fails to perform the duty, the law makes a positive inference that the assignment is only as collateral security, and that inference is substantial evidence upon which the creditor may rely. The circumstance that the assignment of the security is absolute in form, is of no consequence on the question of interest, because the assignment simply operates to transfer the title.</p>