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- Negotiable Instruments Law (7)
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- Certified checks (1)
- City of Ortonville v. Hahn (1)
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Articles 1 - 22 of 22
Full-Text Articles in Law
Bills And Notes - Presentment - Waiver
Bills And Notes - Presentment - Waiver
Michigan Law Review
In an action by the holder against the indorser of a promissory note the question, on the defendant's motion to strike, was whether there was raised a question of fact as to a waiver by the defendant of presentment and notice of dishonor. The plaintiff relied on two letters as evidence of such waiver. One, a letter from the plaintiff to the defendant stating that the note was past due and not paid; and the other, the reply of the defendant Samuel Kullman to the indorser, that "the note will be taken care of not later than next week," but …
Bills And Notes - Post-Dated Checks - Criminal Liability
Bills And Notes - Post-Dated Checks - Criminal Liability
Michigan Law Review
The defendant was indicted for violating a statute which prohibited the drawing of a check with knowledge that funds were insufficient for payment. (Laws of S. D., 1923, c. 121.) The statute provided for abatement of any criminal prosecution upon the defendant's showing that he had an account with the drawee bank thirty days before the check was delivered and had no intent to defraud, and also paid the amount of the check and costs. It was also provided that the statute was inapplicable if the drawee honored the check. The defendant had drawn what is known as a post-dated …
Bills And Notes - Negotiability Of Note Authorizing Judgment
Bills And Notes - Negotiability Of Note Authorizing Judgment
Michigan Law Review
A note, payable ninety days after date, authorized an entry of judgment against the maker by the holder "at any time after the date thereof, without stay of execution." Held, that this authority destroyed the negotiability of the note because it was neither payable on demand nor at a fixed and determinable future time. Wooleyhan v. Green (Del. 1931) 155 Atl. 602.
A Book Of Little Value, Ralph W. Aigler
A Book Of Little Value, Ralph W. Aigler
Michigan Law Review
The former edition of this textbook appeared in 1922, before the Negotiable Instruments Law had been adopted by all of the states. The changes in the present edition are numerous. Part III of the two former editions has hen eliminated by placing the citations to the Negotiable Instruments Law in the footnotes. Many new sections have been added. The chapter on Guaranty and Suretyship has been eliminated. The introductory chapter is essentially new, and a chapter on Amount of Recovery has been added. The chapter on Conflict of Laws has been rewritten. The author has incorporated the proposed amendments to …
Creditors' Rights In Equity
Michigan Law Review
There is a great deal of confusion in the decided cases as to the jurisdiction of equity to protect creditors. Historically we must separate the jurisdiction of equity over decedents' estates. According to Langdell, a creditor's bill is a bill filed by a creditor of a deceased debtor, against the personal or real representative, or against the personal and real representatives, of the latter to compel the payment of a debt. When an execution upon a judgment has been returned unsatisfied, and the judgment creditor files a bill in equity to obtain satisfaction of the judgment out of assets belonging …
Constitutional Law-Bank Guaranty Funds
Constitutional Law-Bank Guaranty Funds
Michigan Law Review
The plaintiff state bank sued to enjoin collection of special assessments under a state bank guaranty law providing for assessments on every bank to establish a fund to protect depositors in failed banks, on the ground that the statute authorizing the assessments had become void as being confiscatory. At the time suit was instituted, the assessments totaled six-tenths of one per cent of average daily deposits, but after an appeal was taken from the decision of the state court, dismissing the injunction granted by the district court, a new act reduced the assessments to two-tenths of one per cent, limited …
Bills And Notes-Negotiability Of Corporate Debentures
Bills And Notes-Negotiability Of Corporate Debentures
Michigan Law Review
Many corporate bonds and debentures contain some such reference provision as the following: "* * * all [bonds, debentures] issued under a certain Trust Agreement, dated as of June 15, 1926, executed by the Company to the National City Bank of New York, as Trustee, to which Trust Agreement reference is hereby made for a statement of the terms under which the said Debentures are issued and the rights and obligations of the Company, of the Trustee and of the respective holders of the said Debentures under said Trust Agreement. * * *." To this clause some of these securities …
Suretyship--Fraud Of Principal On Surety--Principal As Agent Of Creditor
Suretyship--Fraud Of Principal On Surety--Principal As Agent Of Creditor
Michigan Law Review
The plaintiff manufactured medicines, selling to peddlers who operated as independent contractors. Menning, a peddler, signed a new contract with plaintiff for operations for the ensuing year, the contract also covering payment of existing debts ($1,794) to plaintiff. The defendant, induced by Menning and relying on his statement that there was no existing debt, signed the contract as surety, the guaranty reciting a consideration of $1 received by defendant and an extension of time on any debts. This contract was terminated after seven weeks, and plaintiff sued for $1670, the balance due. The defendant claimed that Menning was plaintiff's agent …
Bills And Notes-Acceleration Provisions In Negotiable Paper
Bills And Notes-Acceleration Provisions In Negotiable Paper
Michigan Law Review
The defendant, acceptor, claimed that the trade acceptance sued upon was non-negotiable. This trade acceptance was payable at a specified date, but provided for accelerated maturity in case the acceptor should suspend payment, give a chattel mortgage, suffer fire loss, dispose of his business, or fail to meet at maturity any prior trade acceptance. The defendant claimed that in order to preserve negotiability the contingencies specified in the acceleration clause must be such that their happening will be brought about by some act or omission on the part of the acceptor, and that they must relate to some …
Conflict Of Laws-Bills And Notes-Law Governing Vailidity Of Transfer Of Check By Indorsement
Conflict Of Laws-Bills And Notes-Law Governing Vailidity Of Transfer Of Check By Indorsement
Michigan Law Review
The president of a New York corporation indorsed in blank in the corporate name a check payable to the corporation. He then indorsed the check personally and mailed it to the Banque De Bruxelles, a foreign corporation located in Belgium. The bank in Belgium received it for collection and forwarded it for collection to its correspondent in Washington, D. C. The proceeds were received by the bank in Belgium and credited to the personal account of the president of the New York corporation as directed by him. Later, he withdrew the amount from the bank for his own use. Assignees …
Suretyship-Right Of Surety To Subrogation When Creditor's Claim Not Fully Satisfied
Suretyship-Right Of Surety To Subrogation When Creditor's Claim Not Fully Satisfied
Michigan Law Review
It may be stated as a general proposition that a surety is not entitled to subrogation until the creditor has been paid in full, and that until such time as the creditor has been completely satisfied, the right to be subrogated remains inchoate, as it was when the suretyship contract was made. A reason frequently advanced for this rule is that to allow the surety to have subrogation at once would create a hardship on the creditor. In fact, in the case of Motley v. Harris, the court permitted the surety to be subrogated to dividends of the insolvent …
Mortgages - Exchange For Deed With Option To Repurchase Or Sell To A Third Person And Take The Excess Of Purchase Money
Michigan Law Review
There is no principle more firmly established in equity than the one that the right of redemption constitutes an integral part of every mortgage. Neither by a stipulation in the mortgage itself, nor by any separate contemporaneous agreement, nor by giving a deed intended as a mortgage is it possible for the mortgagor to waive his equitable right to redeem. The application of this principle makes ineffectual the delivery of a deed in escrow at the time the note and mortgage are given, on condition that if the mortgagor does not pay his debt promptly the deed shall be delivered …
Bills And Notes-Right To Indorsement After Transfer
Bills And Notes-Right To Indorsement After Transfer
Michigan Law Review
The payee assigned a note and mortgage to the plaintiff by separate paper. The plaintiff sued the payee under sec. 49, N. I. L. for indorsement and also for the balance due after foreclosing the mortgage. Held, the plaintiff was entitled to an unqualified indorsement and recovery in the absence of a contrary agreement. Parr v. Ft. Pierce Bank & Trust Co. (Fla. 1930) 130. So. 445.
Bills And Notes-Payee As Holder In Due Course
Bills And Notes-Payee As Holder In Due Course
Michigan Law Review
In an action by the payee against the insane accommodation maker of a promissory note, the court held that the payee is presumed to be a holder in due course. F. S. Royster Guano Co. v. Sherman (N. J. 1930) 151 Atl. 382.
Failed Banks, Collection Items, And Trust Preferences, George Gleason Bogert
Failed Banks, Collection Items, And Trust Preferences, George Gleason Bogert
Michigan Law Review
About 1,200 banks failed in the United States during the year 1930, and failures for the years 1921-1929 averaged over 600 a year. Each of these bank failures doubtless involved several problems regarding collection items. In each case it was almost inevitable that there should be found among the assets in the hands of the defunct bank several items held for collection but not yet collected, and also that a number of items should have been collected but no effective remittance made on account of such collection. There thus arose a series of controversies between the banks or individuals which …
Bills And Notes-Payee As Holder In Due Course
Bills And Notes-Payee As Holder In Due Course
Michigan Law Review
P executed a note and securing mortgage leaving a blank for the name of the payee and mortgagee. A, P's agent, in excess of his authority, filled in the blanks with D's name and with D's knowledge. D in good faith paid full value. Held, under sec. 6055,. Mich. Comp. Laws (1915) D has no claim against P, for he is not a holder in due course. Bronson v. Stetson, 252 Mich. 6, 232 N.W. 741.
Bills And Notes-Trade Acceptance-Reference To The Purchase Agreement
Bills And Notes-Trade Acceptance-Reference To The Purchase Agreement
Michigan Law Review
The defendant drew a trade acceptance in favor of the Turner Manufacturing Co. containing the following provision: "The obligation of the acceptor hereof arises out of the purchase of goods from the drawer, maturity being in conformity with the original terms of the purchase." The drawer indorsed the instrument to the plaintiff bank, a purchaser in due course. Held, that the trade acceptance was rendered non-negotiable by the clause "maturity being in conformity with the original terms of the purchase." First Nat. Bank, Statesville, N. C. v. Power-Equipment Co. (Iowa, 1930) 233 N.W. 103.
Trusts-Devices For Defeating Rights Of Creditors
Trusts-Devices For Defeating Rights Of Creditors
Michigan Law Review
Attempts to protect property rights from the claims of creditors are faced at common law with the initial objection that restraints on the power of alienation are wholly ineffective. An exception has been recognized in this country in the case of equitable interests for life or for years. This exception, criticized severely at the time it was first recognized, has established itself in the law of most states in this country, though rejected in two jurisdictions.
Bills And Notes-Checks-Effect Of Alteration Before Acceptance Upon The Acceptor
Bills And Notes-Checks-Effect Of Alteration Before Acceptance Upon The Acceptor
Michigan Law Review
The plaintiff, drawee, sued to recover money paid to the defendant on a certified check in which the name of the payee had been cleverly altered, and which had been indorsed and negotiated by the substituted payee. The plaintiff had certified the check prior to the negotiation to the defendant, an innocent purchaser for value. Held, that under sec. 62 of the N. I. L. the acceptor "engages that he will pay it [the instrument] according to the tenor of his acceptance; and admits, * * * 2. The existence of the payee and his then capacity to indorse"; …
Mortgages-Foreclosure-Default In Interest
Mortgages-Foreclosure-Default In Interest
Michigan Law Review
Plaintiff was a mortgagee of certain real property. A clause in the mortgage provided that the whole amount should become due after default for twenty days in the payment of any installment of interest. Through an arithmetical error of its clerk, the defendant corporation, owner of the equity of redemption, paid $401.87 less than the amount of interest due on one installment. The total interest due was $4621.56. The clerk discovered the error and notified the mortgagee that it would be corrected as soon as the president of the corporation, who alone was authorized to sign checks, returned from Europe. …
Reformation Of Instruments-Mistake Of Facts Underlying Intention
Reformation Of Instruments-Mistake Of Facts Underlying Intention
Michigan Law Review
A debtor determined to mortgage all his property for the benefit of several creditors. His son, commissioned to draw the instrument, was informed that a note to the plaintiff, indorsed by the debtor, would be taken care of by the party primarily liable. So he intentionally omitted the plaintiff's note from the mortgage executed to the other creditors. The note was never paid. After foreclosure of the mortgage, leaving no surplus, the plaintiff sought reformation of the mortgage so as to be included as mortgagee, claiming that the debtor's intention to secure all bank creditors was not executed through mistake …