Washington Bank v. Krum
Supreme Court of Iowa
Appeal from Scott District Court. The report of referee, finding for plaintiff, was confirmed, and defendant appeals. From this report the following facts appear: The action is upon two notes, made by' defendant to Cook & Sargent, and by them indorsed to plaintiff; one for $2,600, and the other for $1,800, dated October 22, 1859, due in six months. As to the first note, there is no defense.
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Appeal from Scott District Court. The report of referee, finding for plaintiff, was confirmed, and defendant appeals. From this report the following facts appear: The action is upon two notes, made by' defendant to Cook & Sargent, and by them indorsed to plaintiff; one for $2,600, and the other for $1,800, dated October 22, 1859, due in six months. As to the first note, there is no defense. The $1,800 note was defended by Krum, who received no consideration on account' of its execution, but made it for the accommodation of Cook & Sargent, to enable them to raise money, by discounting it at…
1Opinion of the CourtWright, J.
Appellant presents two points for onr consideration: First, That an accommodation note, pledged as collateral security for a pre-existing debt, is not discharged of equities. Second, An accommodation note having been once discounted, and afterwards paid and taken np by the party accommodated, becomes void in his hands, and the subsequent transfer of it to a third person, with notice ’of the facts, cannot impart validity to it; but such third party takes it subject to all equities existing between the original parties.
Under the facts found by the referee, we have no difficulty in finding the…
2Cases cited19 opinions
- Grandin v. Le Roy & SmythNew York Court of Chancery · 1831
- Bank of Rutland v. BuckNew York Supreme Court · 1830
- Brown v. MottNew York Supreme Court · 1811
- Agawam Bank v. . StreverNew York Court of Appeals · 1859
- Grant v. EllicottNew York Supreme Court · 1831
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3Cited by2 opinions
- Jones v. BerryhillSupreme Court of Iowa · 1868
- Pistel v. Imperial Mutual Life InsuranceCourt of Appeals of Maryland · 1898