National Bank of La Crosse v. Funke

The appellant bank claims that the court erred in concluding that by signing the creditors’ agreement indorsed on the trust deed it released the defendants from their liability as accommodation indorsers on the notes.

By the terms of the trust deed and the creditors’ agreement the bank agreed to accept its pro rata share of the avails of the assets of the company in payment of its claims, in case the assets should not yield sufficient funds to pay the claims of the creditors in full. The assets will not pay out more than twenty per cent of the amount of the claims. The bank’s three notes were…