Atlantic Bank v. Carnegie Hall Corp.

In this action on a promissory note against accommodation indorsers, the question is whether the allegations and proof in support of the defenses are precluded in the light of the following holding of Mount Vernon Trust Co. v. Bergoff (272 N. Y. 192, 196): “Public policy requires that a person who, for the accommodation of the bank executes an instrument which is in form a binding obligation, should be estopped from thereafter asserting that simultaneously the parties agreed that the instrument should not be enforced.”

The promissory note dated May 16,1963 for $40,000 is payable six months…