Oleon v. Rosenbloom & Co.

Citations

• 247 Pa. 250
• 93 A. 473
• 1915 Pa. LEXIS 817

Syllabus

<p>Negotiable instruments — Promissory notes — Collateral security —Application of collateral to other indebtedness — Bights of holder.</p> <p>Where a promissory note recites that collateral has been deposited as security for the payment of this or any other liability or liabilities “to the holder hereof now due or to become due or that may be hereafter contracted,” and authorizes the sale of the property pledged, on the nonpayment of any of the liabilities mentioned, and the application of the proceeds to the payment of “either or all of said above mentioned liabilities as the holder hereof shall deem proper,” a holder for value and before maturity by endorsement from the payee may apply the collateral to the payment of other obligations owing by the maker to him, as well as to the payment of the note,, and is not required upon tender of the amount of the note at maturity, to surrender the collateral as long as other obligations owing him by the maker remain unsatisfied.</p>