Yates v. Valentine

Citations

• 71 Ill. 643

Syllabus

<p>1. Payment—by giving a new note to a subsequent holder. Whether one note given in lieu of another is a payment of the first, is a question of fact to be determined by the jury. If the subsequent note was executed and accepted by the respective parties for that purpose, the satisfaction of the first note is complete.</p> <p>2. Where a note was indorsed by the payee in blank, and placed in the hands of another person, and the maker had no knowledge of any agreement between the payee of the note and the person in whose hands it was, as to his holding it only as collateral security, the maker was justified in considering the holder as the lawful owner of the note, and in treating with him for its payment.</p> <p>3. In such case, where the maker gave to the holder of such note, new notes for the amount of the principal and interest of the first note, and the holder surrendered the first note to the maker, this showed decisively that it was intended by the parties that the first note was satisfied, and should be canceled.</p> <p>4. The payee, by placing the note in the hands of another, with the full evidence of his right to collect it, must have his recourse, in such case, against the person whom he thus trusted, and not against the maker of the note, who acted in good faith.</p>