Continental National Bank v. . Townsend
New York Court of Appeals
Appeal from judgment of the General Term of the Supreme Court, in the first judicial department, entered upon an order made July 1, 1881, which affirmed a judgment in favor of plaintiff, entered upon a decision of the court on trial without a jury.
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Appeal from judgment of the General Term of the Supreme Court, in the first judicial department, entered upon an order made July 1, 1881, which affirmed a judgment in favor of plaintiff, entered upon a decision of the court on trial without a jury. This action was upon two promissory, notes executed by defendant Thompson, payable to the order of James Reid & Co., and indorsed by that firm to plaintiff on the last day of grace, as collateral security for an indebtedness of that firm. Thompson offered to show by way of set-off an indebtedness of said firm to him existing at the time of the…
1Opinion of the CourtFinch, J.
The principal question on this appeal has been decided'in this court adversely to the views of the appellant. In The Grocers' Bank v. Penfield (69 N. Y. 502), we determined, after a very full examination of the authorities, that where a promissory note is made for the accommodation of the payee, but without restriction as to its use, an indorsee taking it as collateral security for an antecedent debt of the indorser, without other consideration, but in good faith and before dishonor, occupies the position of' a holder for value and is protected as such. That doctrine decides this case, unless…
2Cases cited4 opinions
- Grocers' Bank v. Buffalo & PenfieldNew York Court of Appeals · 1877
- Ayer v. HutchinsMassachusetts Supreme Judicial Court · 1808
- Osborn v. MoncureNew York Supreme Court · 1829
- Smith v. AylesworthNew York Supreme Court · 1863
3Cited by17 opinions
- Haug v. RileySupreme Court of Georgia · 1897
- Mechanics' & Traders' Bank v. LivingstonNew York Court of Common Pleas · 1893
- Farmers' National Bank v. Salina Paper Manufacturing Co.Supreme Court of Kansas · 1897
- Hardon v. DixonAppellate Division of the Supreme Court of the State of New York · 1902
- In re Hopper-Morgan Co.District Court, N.D. New York · 1907
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