Henry R. Guild, Jr. v. Meredith Village Savings Bank

BOWNES, Circuit Judge.

In this diversity case, defendant-appellant, Meredith Village Savings Bank, appeals a judgment of the district court ordering it to return to plaintiffs certain debentures pledged to the bank by plaintiffs’ decedent as security for a demand note to the bank executed by Donald Shoup. 1 The court ruled that the statute of limitations had run on the note and, because it was not collectible, the bank no longer had any right to the collateral and ordered the collateral returned to plaintiffs.

There are two issues:

1. Does the expiration of the statute of limitations on a demand…