Republic Trust Co. v. Gorham

Citations

• 72 Pa. Super. 412
• 1919 Pa. Super. LEXIS 330

Syllabus

<p>Negotiable instruments — Promissory notes — Collateral security —Defense—Estoppel.</p> <p>In an. action on a promissory note given to a corporation, and subsequently negotiated by its president for his own use, tbe maker, who has received notice that a bank bolds such note as collateral security for another individual note of the president of the payee corporation, cannot offer as a defense that the bank or its assignee was not a bona fide purchaser for value, etc., when he made no effort to inform the bank that the note was fraudulently negotiated, or that the officer of the company had exceeded his authority.</p> <p>If a party having a right, stands by and sees another dealing with property in a manner inconsistent with that right, and makes no objection while the act is in progress, he cannot afterwards complain.</p>