Sawyer v. Senn

Citations

• 27 S.C. 251
• 3 S.E. 298
• 1887 S.C. LEXIS 129

Syllabus

<p>1. S. being indebted to bank by overdrafts on his individüal account $40 and, also, on account of S. & Son, 51,112, his wife gave her bond, s wherein it was recited that S. was indebted by overdrafts to said bank to the amount of 51,500, and the condition of said bond was that said S. would pay 51,500 with interest one year after date ; and this bond was secured by a mortgage of Mrs. S.’s separate estate. Held, that this bond and mortgage secured not only the overdrafts on S.’s individual account, but also all indebtedness which overdrafts would create against S., and the terms of the mortgage on record so informed all subsequent purchasers of the mortgaged land.</p> <p>2. By agreement between the bank and S. he continued to make deposits with the right to check out, which he did fully. Held, that this agreement was no fraud on Mrs. S. or her other creditors, and these deposits, under this agreement, were not applicable to the overdrafts on S.’s former account.</p> <p>3. To satisfy the bank examiner, Mrs. S. gave her note for 81,500, payable at 90 days, and the proceeds were credited to S.’s deposit account, but within a month, she signed an agreement that said note was can-celled, and the original bond and mortgage wore to continue of force. Held, that Mrs. S. could not claim that her mortgage was released by the note, nor could a mortgagee subsequent in time to the cancellation of this note.</p> <p>4. Where a bond secures all overdrafts creating a debt -against S., parol testimony is admissible to show what overdrafts do create such an indebtedness ; as, for example, overdrafts of a partnership firm of which S.was a member.</p> <p>5. An extension of time, with the consent of the surety, does not release him, and certainly not where the extension is to the surety himself.</p> <p>6. The bond above recited did not create a continuing guaranty, but only a guaranty of the amount of indebtedness by overdrafts on January 27, 1878, not exceeding fifteen hundred dollars