Skagit State Bank v. Moody

Citations

• 86 Wash. 286
• 150 P. 425
• 1915 Wash. LEXIS 998

Syllabus

<p>Bills and Notes — -Accommodation Notes — Consideration. Where the state hank examiner had required a bank to collect overdue interest on a note or charge the note off, and officers of the bank gave notes to take up the interest in order to satisfy the examiner, their notes must, in law, be considered as an accommodation for the makers of the note, and not for the accommodation of the bank; hence there was a sufficient lawful consideration therefor.</p> <p>Same. The indorsement of the interest on the note by the bank was a waiver of a present right of action against the maker and a sufficient consideration for the officer’s notes for the overdue interest.</p> <p>Bills and Notes — Vapidity—-Illeqal Purpose — Other Consideration. An unlawful agreement that officers of a bank should give notes for the amount of overdue interest on a note held by the bank, in order to deceive the state bank examiner, without being liable to the bank, does not invalidate their notes, as between the parties, where there was a lawful consideration therefor, the sum being intended as payment of the overdue interest and indorsed on the note as such.</p>