Newbold v. Boon

Citations

• 6 Pa. Super. 511
• 1898 Pa. Super. LEXIS 189

Syllabus

<p>Banks and Banking — Promissory note — Rights of indorsers.</p> <p>Where a bank holds the funds of a maker at the maturity of the note, it is bound to consider the interests of the indorsers as sureties; and if it allows the maker to withdraw his funds, after protest, and the indorsers are losers thereby, the bank is liable to them.</p> <p>Promissory note — Accommodation paper — Equities after maturity.</p> <p>The holder of a promissory note, discounted after maturity and protest with full knowledge of its history, can only use it subject to the equities arising out of the transaction and connected with the note itself; he has no higher right to recover against the defendant’s indorsers than had the maker of the paper with whom he acted.</p> <p>The defendants were liable as indorsers on a note made byB. and discounted by the plaintiff. B. offered as a renewal another note with the same indorsers; this plaintiff refused to accept as a renewal, but in point of fact retained it in his possession without any consideration, as a mere memorandum of a rejected offer, but after its maturity and protest, discounted the second note and credited the proceeds to B.’s account in settlement of the prior note and other accounts with B. Held, In a suit against the indorsers on the second note, that plaintiff could not recover.</p>