Marquardt's Estate

Citations

• 251 Pa. 73
• 95 A. 917
• 1915 Pa. LEXIS 637

Syllabus

<p>Negotiable instruments — Promissory notes — Endorsement—Presentment for payment — Waiver.</p> <p>1. A party may prove by oral testimony that at the time of the endorsement of a promisssory note, it was agreed that the endorser should he absolutely bound for the payment of it without the usual demand and notice; the contract to pay on condition that the usual demand and notice be given, which is implied from the endorsement of negotiable instruments, is liable to be changed on the appearance of circumstances inconsistent with it, whether those circumstances be shown orally or in writing.</p> <p>2. Where subscriptions to the stock of a newly formed corporation were paid for in promissory notes, and in order that the corporation might realize thereon, the directors arranged to give a note made by one of their number to the order of another, and endorsed by the remaining directors, to the bank which discounted the stock subscription notes, as collateral security for the payment thereof at maturity, the bank or its assignee, upon the default in payment of a stock subscription note, was not required to present the collateral note to the maker for payment before it could have recourse to the other endorsers, but was entitled immediately to proceed against the endorsers or any of them at its option. In such case the endorsers were not sureties for the maker of the note, but for the corporation in its undertaking with the bank.</p>