Homewood Peoples Bank v. Hastings

Citations

• 263 Pa. 260
• 106 A. 308
• 1919 Pa. LEXIS 413

Syllabus

<p>Principal and surety — Surety —- Guaranty — Statute of limitations — Payment of interest by principal debtor — Bights of surety —Contract.</p> <p>1. Where a contract defines a time when the promisor is to assume liability for a debt, his obligation is that of suretyship; but where there is no time fixed the obligation is general and merely that of guaranty.</p> <p>2. An agreement to guarantee payment of a note payable on demand creates the liability of suretyship as distinguished from technical guaranty.</p> <p>3. A suit upon a contract guaranteeing payment of a note payable on demand must be brought within six years from the date of the note.</p> <p>4. The fact that the principal debtor made payments of interest within six years prior to the bringing of an action against the surety does not prevent the surety from setting up the statute of limitations in bar of an action against him on his contract of suretyship, inasmuch as his rights cannot be affected by subsequent acts of the principal debtor which would prevent the running of the statute as to himself.</p>