Schauss v. Garner

THOMAS, Justice.

The question presented in this case is whether a co-maker of a promissory note, who is an accommodation party, can rely upon the release of collateral by the creditor to defend an action brought against him to recover on the note. The collateral in question consisted of corporate stock which, after its release by the creditor, but before this action was brought, was adjudged to be null and void and was ordered to be rescinded, cancelled and set aside in a different action. At the time the promissory note was executed the co-maker advised the creditor that he did not want to be…