National Bank v. Palmer

Citations

• 56 Pa. Super. 82
• 1914 Pa. Super. LEXIS 47

Syllabus

<p>Promissory notes — Fraud—Defenses—Banks and banking.</p> <p>1. In an action by a bank against the maker of a promissory note where the defendant séts up as a defense fraud by the payee in procuring the note, the bank discharges the burden upon it by proving by its cashier who discounted the note and two of the six directors who had approved the discount, that within a day or two after the note had been executed and delivered to the payee, the latter offered the note for discount at the bank, that the bank accepted the note and credited the proceeds thereof to the payee who promptly checked them out, and all three of the witnesses testify that they had no knowledge whatever of any fraud in the transaction by which the payee secured the note, and the defendant admits that he had no knowledge of the fraud, until long after the note had been discounted.</p> <p>2. In such a case it is not necessary for the bank to call every officer in any way connected with the administration of its affairs, through whom some knowledge of the defect in the delivery of the note might have been brought home to the bank.</p>