President v. Stickney

Citations

• 5 Scam. 3

Syllabus

<p>Error to Gallatin.</p> <p>1. Contract — construed. A. & Co. being indebted to a bank in the sum of $10,959.09, upon promissory notes, bearing interest at eight per centum per annum, to secure their payment, executed to the bank a mortgage upon a stock of merchandise, and authorized the bank, if it should deem it necessary for its security, before the falling due of the notes, to take possession of the property mortgaged, and sell the same, applying the proceeds in payment of the notes. The bank having determined to take possession of the property, A. & Co. sent a note to the bank, stating that if certain persons named in the note should be appointed to take possession of, and sell the goods, and if the same should be sold on a credit of twelve months, they would peaceably deliver the possession of the property to the bank. These persons were appointed, and the merchandise was accordingly sold by agreement of both parties, on a credit of twelve months, and notes taken from the purchasers, bearing interest after six months. The cashier of the bank soon after presented an account to A & Co , containing a statement of the amount of sales, and the interest upon the sale notes for the last six months they had to run, and also the amount of the two promissory notes due from A & Co. to the bank, and the interest thereupon, at the rate of eight per centum per annum, from their dates to the maturity of the sale notes ; and thus balanced the accounts between the parties. At the same time the bank surrendered to A & Co. their two notes, which he received without making any- objection to the charge of interest up to the maturity of the sale notes; but about one year afterwards he called upon the bank to refund this interest. The bank refused, and A brought suit against the bank to recover it':' Held, that the bank was entitled to interest until the maturity of the sale notes ; and that the suit could not be maintained.</p>