Lawrence-Cedarhurst Bank v. Ruth

The action is on a promissory note, being a demand note, made by the defendant to the plaintiff. The complaint shows that the note was secured by certain collateral which has been sold upon due notice to the defendant, the proceeds credited to the note, and that judgment is sought for the balance of the note remaining after such credit.

This is admitted by the defendant in his answer, who, however, interposes a separate defense alleging in substance that the note ■and securities were given by him to the bank under an express agreement that they were to constitute a deposit to guarantee the…