Rogers v. Trustees of Schools of Township 23

Citations

• 46 Ill. 428

Syllabus

<p>1. Release of surety—by the destruction of collateral securities. Where the holder of a note, with personal security, at the time of its execution, receives other security therefor, as a mortgage on real estate, a destruction of such collateral security by the payee of the note, without consent of the sureties, will operate to release such sureties.</p> <p>2. And, if a note so secured, is renewed with personal security, a part of the sureties upon the new note being the same as upon the original note, and a part not the same, the mortgage, which is incident to the old debt, will follow it, and the destruction of such collateral security subsequent to the execution of the new note will operate to release the sureties upon the new note.</p> <p>3. Promissory note—when joint and several,, of the relation of the makers as sureties. Where a joint and several note is executed by the party in interest as principal with one or more, not in interest as sureties, and their character as sureties being so understood by the payee of the note, it is competent for them, even in an action at law, to prove their character as sureties by extrinsic evidence. This rule applies as well, where a note was under seal, as where it was not.</p> <p>4. So, where the makers of the new note are so released by the subsequent destruction of the collateral security, they may make their defense available in an action at law upon the note.</p>