National Bank v. Bruhn

Citations

• 64 Tex. 571

Syllabus

<p>1. Collateeals — Evidenoe — Negligence. — Two parties were sued on a joint note for §328.95, bearing interest at two per cent, per month; they pleaded in reconvention that one of them had deposited with plaintiff §1,300 in scrip, as collateral security for the note sued on, and also for another note for §120 previously made and delivered to plaintiff by the defendant who deposited the scrip. That plaintiff had sold §1,000 of the scrip and applied the proceeds to the payment of the larger note and a part payment of the smaller, but, contrary to the instructions of defendants, had held thej-emaining §300 in scrip until it had depreciated in value so as to be almost worthless. These allegations were substantially proved. The second note did not show upon its face that it was secured by the same collaterals as the first. Held:</p> <p>(1) The scrip remaining after the first note was satisfied should have been applied to the payment of the second.</p> <p>(2) Evidence was admissible to prove that the second note was secured by additional collaterals to those appearing upon its face.</p> <p>(3) Defendants should be credited with what the proceeds of the collaterals would have been, if plaintiff had not been negligent in disposing of them.</p> <p>2. Usuby — National banks — Revised Statutes United States, section 5197 — Intent.— Under the constitution and statutes of Texas, in force March 26,1874, eight per cent, per annum was allowed when no interest was specified, but the parties might agree upon any rate (Pasch. Dig., art. 3940). The Revised Statutes of the United States, section 5197, provide that national banks may charge the rate of interest allowed by the state or territory where they are located, and no more, but where no rate is fixed by such state or territory, the bank shall not'charge exceeding seven per cent, per annum.</p> <p>3. Same. — The general rule and intention is, that national banks shall stand on the same footing with individuals; the United States