Nott v. State National Bank

Citations

• 51 La. Ann. 871
• 25 So. 475
• 1899 La. LEXIS 487

Syllabus

<p>Syllabus.</p> <p>1. This was a suit for the amount realized on property pledged, brought ots. the grounds that the pledgor had pledged his property without consideration, and within ninety days preceding his insolvency. The act of pledge contained the declaration that the pledge was made to avoid the sale and sacrifice of securities already pledged and for further security. The declaration was sustained by the facts, and there was, in consequence, sufficient consideration for the pledge.</p> <p>2. A note payable on demand is a negotiable instrument which becomes past due after demand, and is not subject to equities prior to demand.</p> <p>3. An amount given or a pledge made to obtain a creditor’s forbearance not to-sell the property pledged by which the note payable on demand was secured,, was not a gratuity, as time for payment was granted (in effect), although-the note secured by pledge was made payable on demand.</p> <p>4. Failure, growing out of sudden unforseen events, does not affect the1 validity of a transaction made in good faith for a full consideration, entered into within three months preceding failure.</p>