Merchants National Bank v. Lewis

The case is governed by section 120 of the negotiable instruments act (P. L., c. 312), which provides that a person secondarily liable on a negotiable instrument is discharged by any agreement binding upon the holder to extend the time of payment, or to postpone the holder’s right to enforce the instrument, unless made with the assent of the party secondarily liable, or unless recourse against such party is expressly reserved. The person “primarily” liable is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are “secondarily” liable. P.…