Hayes v. Addy

The opinion of the court was delivered by

Thiele, J.:

This was an action by the receiver of a failed bank to recover on a note against the maker, Addy, and an indorser, Kaul, who defended on the ground he was an accommodation indorser.

The First National Bank of Holton failed May 18, 1931. For some years prior thereto both defendants had been transacting some business with the bank under an arrangement whereby Addy had been borrowing money for use in a venture in which he and Kaul were interested. Defendants claimed this course of dealing had *482ceased some time prior to the giving of the note in…