First National Bank v. Peltz

Citations

• 176 Pa. 513
• 35 A. 218
• 1896 Pa. LEXIS 1106

Syllabus

<p>Banks and banking — Depositor—Promissory notes — Payment.</p> <p>While a bank which is a holder of a promissory note and has on deposit at the time of maturity to the credit of any party liable to it on the note a sum sufficient to pay it, and not previously appropriated by the depositor to be held for a different purpose, may apply the deposit to the payment of the note, yet it is not in general bound to do so. The cases where the right becomes a duty on the part of the bank rest on the special equity of the party, usually the indorser, to have the payment enforced against the depositor as the one primarily liable. In these cases the deposit must be sufficient at the time of maturity of the note, it must not have been previously appropriated to any other use, and it must be to the credit of the party primarily liable.</p> <p>A promissory note made by B. to the order of K. was indorsed by K. and by P. and W. for K.’s accommodation. K. procured the note to be discounted by a bank. The note was not paid at maturity and the bank brought suit against P. P. offered evidence to show that six days after the maturity of the note and at other times thereafter the bank had a balance to the credit of K. sufficiently large to pay the note. He also offered to prove that P. was an accommodation indorser and that the bank knew this fact. Held, that the evidence was incompetent and irrelevant.</p> <p>Promissory notes — Giving judgment — Discharge of indorser.</p> <p>The giving of a judgment or other security by the maker or a prior indorser does not discharge a subsequent indorser.</p> <p>Promissory notes — Indemnity—Evidence—Estoppel.</p> <p>A promissory note was made by B. for the accommodation of K., and payable to him. K. indorsed the note first and P. and W. indorsed it for K.’s accommodation. In a suit against P. upon the note by the bank which had discounted it P. offered to show that he had been indemnified against his liability on the note by a judgment against K„ and t