MCMASTER'S COMMERCIAL DECISIONS
FROM THE REPORTS OF THE HIGHEST COURTS OF THE SEVERAL STATES.
EXAMINER N. Y. STATE BANK DEPARTMENT
The Negotiable Instruments Law pro- vides that where a drawee, to whom a bill is delivered for acceptance, de- stroys it or refuses within twenty- four hours after such delivery, or within such other period as the holder may allow, to return the bill accepted or non-accepted to the holder, he will be deemed to have accepted it. This does not contem. plate a tortious refusal to return or is it necessary for a demand to be made. The mere non-return for any reason within twenty-four hours after delivery makes the drawee liable to the holder. 271a, No. 1073.
The bank is a bona fide holder of a note given for indebtedness to the bank where it applies the proceeds of the note as a credit to the debtor, and surrenders bills of lading pledged as collateral, and where the bank refuses to accept a renewal note, acceptance is not shown by the fact that the bank attached to the original note the renewal note at the time of making demand, so that both could be restored to the maker on payment. 22a, No. 1005, p. 32. The drawees of a draft had previously written the bank cashing the draft, that they would honor a certain drawer's draft for $1,000 on hogs or cattle and should he want more have him phone" and they would try to handle his stock. Held, there was no obligation to honor any draft of the drawer except one for price of stock shipped by drawer. 26a, No. 1008, p. 37.
ACCOMMODATION INDORSER:
A bank was the holder for value of a promissory note which had as an ac- commodation indorser the signature of a corporation. The corporation pleaded that no consideration passed to it and that its name was indorsed without authority by its manager as an accommodation. Held that this plea stated a good defense. 245a. Prior to the taking effect of the Nego- tiable Instruments Law, passed in Ohio on April 17th, 1902, a person, placing his name in blank on the back of a promissory note, before the delivery of the note to the payee, was liable as a surety unless there was a different understanding be- tween the parties; but by force of said act, the person so placing his name on the back of the paper is an indorser, and as such he is entitled to notice of demand upon those who are primarily liable, and notice of non-payment to him in case the note is not paid at its maturity. 261a, No. 1070.
The Negotiable Instruments Law pro- vides that an accommodation in- dorser of a check is liable to the holder for value, notwithstanding the fact that the holder knew that the indorser was an accommodation party. A bank which deducted from the accommodation indorser's ac- count the amount of a raised check, has properly deducted the difference between the original amount and the amount to which the check was raised, but should not deduct the original amount of the check. 31a, No. 1010, p. 42.
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