Pelton v. San Jacinto Lumber Co.

Citations

• 113 Cal. 21
• 45 P. 12
• 1896 Cal. LEXIS 738

Syllabus

<p>Action upon Promissory Note—Defense—Material Alteration—Place of Payment—Discharge of Sureties.—Where no place of payment is designated in a note executed in this state, it is payable only in this state, and, where a note so drawn, after being indorsed, was altered so as to make it payable at a designated hank in the state of New York without the knowledge or consent of the indorsers, the alteration of the note is material, and will discharge the indorsers whether they he considered as indorsers or guarantors.</p> <p>Id. — Stockholders as Sureties for Corporations. — The fact that the altered note was given by a corporation, and that the indorsers were stockholders in the corporation, does not affect the rule that they are discharged from liability on the note by a material alteration of it without their consent, and the fact that they were indirectly benefited in proportion to the stock owned by them at the time of the loan is immaterial, where they are sued upon the note, and not upon their statutory liability.</p> <p>Id.—Alteration Made by Agent of Corporation — Liability of Cop.PORATION.—The corporation cannot avail itself of the defense of a material alteration of the note as to place of payment, when such alteration was6 made by the agent of the corporation before delivery of the note to the payee.</p>