First National Bank v. Signs

The opinion of the court was delivered by

Dawson, C. J.:

The single question presented in this appeal is whether a payment on a promissory note made by a trustee of the estate of a bankrupt tolls the statute of limitations.

The facts were not in dispute. On March 4, 1931, the defendant, *802T. J. Signs, executed his promissory note for $2,800 in favor of the plaintiff bank, payable on demand. Later, Signs filed a voluntary petition in bankruptcy. On August 25, 1932, the federal referee in bankruptcy made a payment of $19.44 on the note, which sum was derived from the proceeds of the bankrupt’s…