In re Holbrook
District Court, D. Massachusetts
The Windham Provident Institution for Savings, of Battleboro’, Vt, offered for proof, against the joint estate of the bankrupt firm, two notes of $5,000 each, payable to the order of the savings-bank, on demand, with interest payable semi-annually. One note was in this form; “We jointly and severally promise,” and was signed, “F. F. Holbrook & Co., F. Goodhue, S. M. Waite.” Goodhue and Waite were sureties only, though this did not appear on the note.
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The Windham Provident Institution for Savings, of Battleboro’, Vt, offered for proof, against the joint estate of the bankrupt firm, two notes of $5,000 each, payable to the order of the savings-bank, on demand, with interest payable semi-annually. One note was in this form; “We jointly and severally promise,” and was signed, “F. F. Holbrook & Co., F. Goodhue, S. M. Waite.” Goodhue and Waite were sureties only, though this did not appear on the note. The other note was, “I promise,” and was signed by the three members, of the firm, in their individual names, and by three sureties. The money…
1Opinion of the Court
LOWELL, District Judge.
Section 20 of the bankrupt act [of 18G7 (14 Stat. 526)), which requires creditors who hold security upon any property of the bankrupt to procure it to be sold or valued, and its proceeds or value to be deducted from the debt before proof is made against the assets in bankruptcy, extends, I think, to a case in which an indorser, surety, or guarantor holds such security from the bankrupt, though there be no legal privity between the surety and the creditor. In equity, the creditor can compel the surety to apply the property towards the payment of the debt for which it is…
2Cases cited2 opinions
- Wilder v. KeelerNew York Court of Chancery · 1831
- Besley v. LawrenceNew York Court of Chancery · 1845
3Cited by8 opinions
- Champion v. BuckinghamMassachusetts Supreme Judicial Court · 1896
- Franklin County National Bank v. First National BankMassachusetts Supreme Judicial Court · 1885
- Hale v. LeatherbeeMassachusetts Supreme Judicial Court · 1900
- Wilson v. BryantMassachusetts Supreme Judicial Court · 1883
- Union Nat. Bank v. NeiliCourt of Appeals for the Fifth Circuit · 1906
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