Law Commons^™

Bills And Notes - Accommodation Paper - Defenses Which Can Be Asserted Dy Maker Against One Not A Holder In Due Course, Robert A. Solomon

Michigan Law Review

The defendant, at the request of her husband, signed a blank promissory note. After making the note payable to himself, the husband discounted the note before maturity at the plaintiff bank. In an action by the bank against the wife, the accommodation maker claimed that the bank took in bad faith and that the negotiation to the bank was a diversion from the intended purpose of the accommodation. The plaintiff bank sought to recover upon the ground that the defendant was liable to it as a holder for value irrespective of whether it was a holder in due course. Held …

Bills And Notes - Effect Of Statute Of Limitations On Demand Certificates Of Deposit And Certified Checks, Michigan Law Review

Michigan Law Review

Plaintiff sued on a certificate of deposit and a certified check, the former being issued by the defendant bank in 1905 and the latter being certified in 1919. Both were negotiated in 1937 and presented for payment the next day. Defendant pleaded the ten year statute of limitations as a bar. Held, at common law the statute of limitations did not operate on demand certificates of deposit until demand had been made, and section 70 of the Negotiable Instrument Law does not alter this common-law requirement. This applies also to certified checks, for they are substantially the same as …

Bills And Notes - Indorser - Language Showing Other Intent, William K. Jackson

Michigan Law Review

Defendants were accommodation parties on a note, signing in the following manner: "For value received we hereby guarantee the payment of the within note at maturity or at any time thereafter with interest at the rate of seven per cent per annum until paid, and agree to pay all cost or expenses paid or incurred in collecting the same, waiving demand of payment, protest and notice of protest." Held, the signers, having written out their contract in some detail, expressed a sufficient intention to be bound as guarantors and not an indorsers, notwithstanding the additional words "waiving demand of …

The Maturity Of Certificates Of Deposit And Promissory Notes Payable On Demand, Orrin B. Evans

Michigan Law Review

In one form or another a dozen cynics have voiced the sentiment that "speech exists to conceal thoughts." Perhaps because language is too intimately integrated with their livelihood, the lawyers have not generally admitted the assertion. However, in the interpretation of written instruments their brethren on the bench have at times so far disregarded the literal meaning of the words under consideration that one must suspect they secretly approve.

Promissory notes "payable on demand" furnish an illustration. Many cases testify that the true intention of the maker is to create an obligation due immediately and that an action to collect …