Oregon Bank v. Baardson

The plaintiff bank brought an action to recover on two promissory notes signed by the defendant and Lee Williams as co-makers. The defendant answered alleging that he was an accommodation maker and was discharged from his obligation because the bank impaired collateral given by his comaker, Williams. The only issues were those raised by the answer and a counterclaim. The court directed a verdict for plaintiff and defendant appeals.

Williams makes mobile pellet mills. Such mills process hay into pellets to feed stock. The defendant Baardson sells some of the machinery and equipment ■which is…