State Bank of La Crosse v. Michel

WiNslow, 0. J.

This is an action brought against tbe surety upon a promissory note of $2,500. Tbe defense was that tbe plaintiff bad in its bands collateral security turned-out by tbe principal to secure tbe payment of tbe note and applied said security to tbe payment of tbe principal’s debt to another bank, and that by this act tbe surety was wholly discharged under tbe provisions of tbe Negotiable Instrument Law (sub. 4a, sec. 1679 — 1, Stats.). Tbe trial court found that tbe plaintiff bank applied tbe sum of $1,331 of funds received by it from tbe sale of goods pledged to it by tbe…