Moreland's Assignee v. Citizens' Savings Bank
Court of Appeals of Kentucky
Case 36 — PETITION ORDINARY APPEAL FROM DAVEISS CIRCUIT COURT. 1. The answer presents a good defense. A diversion of accommodation paper from the special purpose for which it was executed will release the accommodation drawer, and one who takes the paper with knowledge of the diversion is not a bona- fide holder. (1 Daniel on Negotiable Instruments (3d ed.), secs. 177, 789, 776a, 770, 790, 791, 792; Thompson v. Poston, 1 Duv., 392; 2 Am. & Eng.
Read the full summary
Case 36 — PETITION ORDINARY APPEAL FROM DAVEISS CIRCUIT COURT. 1. The answer presents a good defense. A diversion of accommodation paper from the special purpose for which it was executed will release the accommodation drawer, and one who takes the paper with knowledge of the diversion is not a bona- fide holder. (1 Daniel on Negotiable Instruments (3d ed.), secs. 177, 789, 776a, 770, 790, 791, 792; Thompson v. Poston, 1 Duv., 392; 2 Am. & Eng. Enc. of Law, p. 395, note; Idem, p. 394; Russell v. Ballard, 16 B. M., 205; Brandt on Suretyship and Guaranty, vol. 2 (2d ed.), sec. 397; Idem, vol.…
1Opinion of the Court
JUDGE PAYNTER
delivered the opinion of the court.
This action is upon a bill of exchange for $2,900, dated March 24, 1892, drawn by J. P. Moreland, accepted by T. Y. Val den, and endorsed by J. A. Fuqua, made payable at appellee Citizens Savings Bank six months after date.
J. P. Moreland having made an assignment, the appellant Taylor, his assignee, resisted a recovery on the bill of exchange claiming (1) that it was drawn for accommodation and the proceeds were fraudulently diverted;. (2) *213that the notary public was the cashier of and a stockholder in the appellee bank, therefore he had no legal…
2Cases cited1 opinion
- Herkimer County Bank v. CoxNew York Supreme Court · 1839
3Cited by5 opinions
- Bank of Woodland v. OberhausCalifornia Supreme Court · 1899
- Roberts v. International BankCourt of Appeals for the D.C. Circuit · 1928
- Sousley v. Citizens Bank of NeptonCourt of Appeals of Kentucky · 1916
- Beattyville Bank v. RobertsCourt of Appeals of Kentucky · 1904
- Hefferlin v. KriegerMontana Supreme Court · 1897