International Trust Co. v. Wattendorf

This is an action on a promissory note, of which the defendant is the maker, payable on demand to the Old South Trust Company. The president of the Old South Trust Company had invested a portion of its funds in stock of the Massachusetts Electrics securities, which were not a proper investment for trust companies. One Levine, a director of the trust company, at the request of the president, gave his notes to the bank to take the place of the securities, upon being assured he would not be called upon to pay the notes. Subsequently he withdrew from the board of directors and his notes were…