Schwarzansky v. Averill

Citations

• 7 Daly 254

Syllabus

<p>A person who indorses a note before its delivery to the payee, with the intention of becoming surety for the payment of the note, is liable to the payee, who has advanced money or property, or given credit on the faith of such security, for the amount of the note, although the indorsement was without consideration.</p> <p>It seems, that an allegation in the complaint, that the indorsement was made “ for the purpose of obtaining credit ” for the maker with the payee, is a sufficient allegation of intention on the part of the indorser to become a surety for the maker of the note.</p> <p>Knowledge on the part of the indorser that the maker intended to obtain credit with the payee by means of the indorsement, is not to be inferred from the fact that the iudorser signed before the payee.</p> <p>Where, at the time of indorsement, the indorser (defendant) was informed by the maker that he had an arrangement with the payee (plaintiff), by which he could get certain stock if the defendant would indofsethe note, and where such note was used to take up another note held by the plaintiff, on which the defendant was liable only as an accommodation indorser. Held, sufficient evidence to show that the defendant indorsed the note as surety for the maker.</p>