Rudolph Savings Bank Co. v. Anchor Oil & Gas Co.

Citations

• 101 Ohio St. (N.S.) 217

Syllabus

<p>Negotiable instruments — Accommodation endorsement — Notice to transferee — Partnership note endorsed by payee bank’s cashier — And forwarded to correspondent bank for discount — Secretary of partnership and bank cashier same person — Payee bank not liable to discounting bank, when.</p> <p>A past due note, executed by The Anchor Oil & Gas Company, by Harding, Sec’y, and endorsed in the name of the payee, The First National 'Bank, by Harding, Cashier, was discounted by The Rudolph Savings Bank Company in response to a letter signed by Harding, individually, in which letter Harding stated that he was a member of the Anchor Company, a partnership, the maker of the note, and that to carry the note in the bank of which he was cashier would be to “overloan some [of] the interested parties.”</p> <p>The note was never entered or carried upon the books of the First National Bank as the property of that bank, and the proceeds of the discount of the note by the Rudolph Bank were paid to the maker, the Anchor Company:</p> <p>Held, That the First National Bank is not liable on its endorsement at the suit of the Rudolph Bank, the latter being charged with notice that the endorsement of the note in the name of the First National Bank was for the accommpdation of the maker, and unauthorized.</p>