Richards v. Market Exchange Bank Co.

Citations

• 81 Ohio St. (N.S.) 348

Syllabus

<p>One signing promissory note — On face thereof — Becoming surety for principal maker — Is primarily liable for payment of such note — Common law rule that agreement between holder and principal — Varying contract by which surety is bound — And thereby releasing latter from liability — No longer in force as to one signing on face of instrument — Construction of Sections 3175j, 31750, 3175P and 3178a, Revised Statutes— Negotiable Instruments Act of Ohio.</p> <p>1. One who signs a- promissory note on the face thereof, and, who in that way becomes a surety for the principal maker, is, by force of section 3178a, Revised Statutes, primarily liable for the payment of such note.</p> <p>2. Section 3175/, Revised Statutes, relating to the discharge of negotiable instruments, provides in what manner, and for what causes, such instruments may be discharged, and, by force of the rule expressio unius est cxclusio alterius, sureties upon such instruments who are primarily liable thereon cannot be otherwise relieved from responsibility for their payment.</p> <p>3. The rule of the common law that any agreement between the holder of a promissory note and the principal, which varies essentially the terms of the contract by which a surety is. bound without the consent of such surety will work his release from liability, is no longer in force as to one who has signed on the face of the instrument, such rule having been in effect abrogated by section 3175/, Revised Statutes.</p> <p>4. Sections 3175o and 3175/>, Revised Statutes, relating to the alteration of instruments, apply to the physical alteration of the instrument itself, but do not apply to a contract between the holder and the principal maker for an extension of time of payment of the instrument.</p>