McLemore v. Hawkins

Citations

• 46 Miss. 715

Syllabus

<p>1. PROMISSORY NOTE— PAYEE BE-ACQUIRING XT IS KESTOBED TO HIS ORIGINAL title, and may deal with it As owneb. —The payee of a promissory note may aooompany the transfer of it with a trust, and when that has failed, or been accomplished, and the paper has been returned to him, ha may sue on it without re-indorsement. By the return of the note to him, he is, ipso facto, restored to his original title, and may deal with it as though he had never negotiated it, and may strike from it the previous indorsements, or not, at his pleasure, and may sue without doing so.</p> <p>2. SAME — PLEDGE —POWER OP pledgee —his dtjty and obligations in reference to the subjeot op the pledge. —The pledgor remains owner of the thing pledged, whether it be a chattel or negotiable paper, and the pledgee, with whom is the possession, must use the care and diligence with respect to the thing, according to its nature, which men of ordinary prudence bestow about their own affairs. Upon default made in the condition upon which the pledge was made, the title does not vest in the pledgee, but still retains its character as security or indemnity for the principal obligation, to be made effective by a disposition according to laiy. If negotiable paper be the subject, the pledgee, at his peril, must protect the right of the pledgor, by making demand, protesting and giving notice; for by negligence in this behalf he makes the debt his own.</p> <p>3. Same — same — same. — The power of the pledgee of a note or bill extends to the collection of the entire debt pledged, to be applied, first, to liquidate his demand, and to hold the surplus to the use of the pledgor. As to the excess, his power is that of an agent to collect, and does not extend to authority to compromise, make a rebate, or to forgive, in whole or in part.</p> <p>4. Persons dealing with agent or trustee must know the extent of his authority. — Those who deal with an agent or trustee must know the extent of the delegated power, for the act