Clem v. Chapman

J. L. Chapman, commissioner of insurance and banking, brought this suit against R. H. Clem and C. M. Mc-Natt upon a promissory note held by the Guaranty State Bank of Olden, Tex., at the time that bank became insolvent and was taken over by the commissioner for the purpose of liquidation.

Clem set up three defenses. In view' of the similarity of the propositions presented, we need state only two:

First. That he was merely a surety upon the note, McNatt being the principal; that at the maturity of the note, the hank, holder at that time, with the knowledge of the fact that he was a surety only,…