State Bank v. Hayes

Citations

• 16 S.D. 365
• 92 N.W. 1068
• 1902 S.D. LEXIS 121

Syllabus

<p>I. Where a debtor executed to his creditor a note for a sum exceeding the debt, and received the creditor’s note for the amount of such excess, the note given by such debtor was not an accommodation note, hut was for a full consideration.</p> <p>2. Under Comp. Laws, g 3442, providing that “a non-negotiable written contract for the payment of money may be transferred by indorsement in like manner with negotiable instruments, * * * subject to all equities and defenses existing in favor of the maker at the time of the indorsement,” a right of action for breach of contract accruing to the maker of a nonnegotiable note against the payee, three years after the note was transferred by indorsement constitutes no defense to a suit by the indorsee to recover on the note.</p>