Chelsea Exchange Bank v. LaHiff

McAvoy, J.:

One Benjamin B. Green executed a note to the order of a corporation known as the Nikola Chemical Company, Inc. This note was for $12,000 and was payable at the banking office of the plaintiff. It was indorsed by the defendant LaHiff and then delivered to the Nikola Chemical Company, Inc., the payee. The plaintiff bank discounted this note about a week after its execution and credited the account of the Nikola Chemical Company, Inc., with the amount of the note, less the customary discount.

The suit is brought because the note was not paid by either the maker or indorser. When it…