Solomon v. First National Bank of Meridian

Citations

• 72 Miss. 854

Syllabus

<p>1. BANK. Dividends. Application, to debts of stockholders. Swety.</p> <p>A resolution of the directors of a bank that a dividend declared shall be entered as a credit on any debt of a shareholder to the bank ‘ ‘ whose indebtedness is not fully secured, ” does not authorize it to appropriate the dividend of a shareholder to a note on which he is surety, where, at the time the dividend was declared, the note was secured by collaterals which the bank afterwards, with the consent of the surety, surrendered, taking- in lieu thereof a trust-deed on land of the principal debtor to secure the note and an additional debt, reciting in the trust-deed that the note was extended twelve months.</p> <p>2. Pbincipal and Subbtv. Change of securities. Extension. Waiver.</p> <p>The surety on a note secured by collaterals of the principal debtor, by merely consenting that the collaterals be surrendered and that a deed of trust be given by the principal debtor in lieu thereof to secure the note and another debt of the principal (the note being extended), does not waive his right to have the security first applied on the note in his exoneration.</p>