Bank of the State of New York v. Vanderhorst
The Superior Court of New York City
This was an appeal from a judgment against the defendant. The defendant was sued as the maker of a promissory note made payable to the order of Kolff & Persuhn, for whose accommodation it was made. The payees, before maturity, indorsed the note in blank, and through one Stange, their attorney in fact, delivered the same to the bank (the plaintiff) as collateral security to their own note discounted by the bank for them.
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This was an appeal from a judgment against the defendant. The defendant was sued as the maker of a promissory note made payable to the order of Kolff & Persuhn, for whose accommodation it was made. The payees, before maturity, indorsed the note in blank, and through one Stange, their attorney in fact, delivered the same to the bank (the plaintiff) as collateral security to their own note discounted by the bank for them. Kolff & Persuhn, through their attorney Stange, applied to the bank'in writing to discount their note for $5000, offering the note in suit and other bills receivable as…
1Opinion of the CourtMonell, J.
The result of a careful examination of the cases is, that in this state the law seems to be now settled, that a promissory note, taken in payment of an antecedent debt, and the prior indebtedness extinguished, is deemed to be taken for value, so as to constitute it a valid security in the hands of the holder. (Rutland Bank v. Buck, 5 Wend. 66. Grandin v. Le Roy, 2 Paige, 509. Lathrop v. Morris, 5 Sandf. 7. Mohawk Bank v. Corey, 1 Hill, 513. Youngs v. Lee, 12 N. Y. Rep. 551. Boyd v. Cummings, 17 id. 101. Stettheimer v. Meyer, 33 Barb. 215. .Spencer v. Ballou, 18 N. Y. Rep. 327.)
The principle…
2Cases cited12 opinions
- Wheeler v. . NewbouldNew York Court of Appeals · 1857
- Grandin v. Le Roy & SmythNew York Court of Chancery · 1831
- Bank of Rutland v. BuckNew York Supreme Court · 1830
- White & Williams v. PlattNew York Supreme Court · 1848
- Garlick v. JamesNew York Supreme Court · 1815
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