Grocers' Bank v. Buffalo & Penfield
New York Court of Appeals
Appeal from judgment of the General Term of the Supreme Court in the first judicial department reversing a judgment in favor of defendants, entered upon the report of a referee. (Reported below, 7 Hun, 279.) This action was upon two promissory notes, or which defendants Penfield and Stone were makers, which were made payable to defendant Truax, and by him indorsed and transferred to plaintiff.
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Appeal from judgment of the General Term of the Supreme Court in the first judicial department reversing a judgment in favor of defendants, entered upon the report of a referee. (Reported below, 7 Hun, 279.) This action was upon two promissory notes, or which defendants Penfield and Stone were makers, which were made payable to defendant Truax, and by him indorsed and transferred to plaintiff. The referee found, in substance, that the notes were executed by the makers without any consideration; were accommodation notes, and were received by plaintiff solely as collateral security for a…
1Opinion of the CourtRapallo, J.
We think that the order in this case must be affirmed on the ground stated by Brady, J., in his opinion delivered at General Term. Whatever confusion may have existed upon the point, we think that we may now safely say, in the language of Professor Parsons (1 Parsons on Notes and Bills, 296), that it is universally conceded that the holder of an accommodation note, without restriction as to the mode of using it, may transfer it either in payment or as collateral security for an antecedent debt, and the maker will have no defence. (See, also, Story on Bills, § 192, note m, and Story on Notes,…
2Cases cited5 opinions
- Swift v. TysonSupreme Court of the United States · 1842
- Bank of Rutland v. BuckNew York Supreme Court · 1830
- Maitland v. Citizens' National BankCourt of Appeals of Maryland · 1874
- Cole v. SaulpaughNew York Supreme Court · 1865
- Wolfe v. J. Myers & Co.The Superior Court of New York City · 1849
3Cited by49 opinions
- Freund v. Importers & Traders' National BankNew York Court of Appeals · 1879
- Benjamin v. . RogersNew York Court of Appeals · 1891
- Conrad v. FisherMissouri Court of Appeals · 1889
- Lehrenkrauss v. . BonnellNew York Court of Appeals · 1910
- Roberts v. . TobiasNew York Court of Appeals · 1890
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