First National Bank v. Rhode Island Insurance

Hart, C. J.,

(after stating the facts). The court erred in holding that the First National Bank of Huttig was not entitled to the proceeds of the insurance draft for two reasons:

In the first place, under our Negotiable Instruments Act, § 7896 of Crawford & Moses’ Digest, where, in a bill of exchange, the drawer and the drawee are the samé person, the holder may treat the instrument at his election either as a ¡bill of exchange or as a promissory note. This was the law prior to the passage of the act in question. A bill of exchange drawn by the maker upon himself is in legal effect a promissory…