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Bills And Notes - Acceleration Clause As Affecting Negotiability
Bills And Notes - Acceleration Clause As Affecting Negotiability
Michigan Law Review
Defendant was sued on a note containing, among other acceleration clauses, a provision that if any holder deemed himself insecure at any time, the note should become immediately due and payable. Appealing from a summary judgment against him, the defendant contended that the instrument was nonnegotiable. Held, the acceleration provisions in the instrument did not destroy its negotiability. Dart National Bank v. Burton, 258 Mich. 283, 241 N. W. 858 (1932).
Restrictive Indorsements
Michigan Law Review
Under Sec. 36 of the N. I. L. an indorsement is restrictive which prohibits further negotiation or constitutes the indorsee the agent of the indorser or vests the title in a trustee in trust for some other person. The mere absence of words importing a power to negotiate does not, however, make the indorsement restrictive. Among the rights of a restrictive indorsee as declared by Sec. 37 is the one to bring "any action thereon that the indorser could bring." The remaining provision of the statute dealing with such indorsements is Sec. 47, which provides that "An instrument negotiable in …
Bills And Notes - Authority To Fill In Blanks - Effect Of Death Of Maker
Bills And Notes - Authority To Fill In Blanks - Effect Of Death Of Maker
Michigan Law Review
H gave W his note in blank with authority to fill it in at $50,000 when she wished, the note representing W's interest in their joint property. W filled in the blanks after H's death and sued H's estate on the note. Held, the authority to fill in was not revoked by H's death, for it was a power coupled with an interest. In re Ferrara (N. J. 19 3 l) 156 Atl. 265.
Bills And Notes-Waiver Of Demand And Notice In Printed Form
Bills And Notes-Waiver Of Demand And Notice In Printed Form
Michigan Law Review
The defendant, Addison, who was payee of a promissory note, indorsed it "Pay to F. Main, Wm. Addison & Son." The indorsement was directly below a printed waiver in the usual form. Apparently the only defense was failure of demand and notice. Held, the indorser must be presumed to have waived these defenses. Krenerick v. Horton, 254 Mich. 12, 235 N. W. 810 (1931).
Bills And Notes - Waiver Of Presentment And Notice Of Dishonor
Bills And Notes - Waiver Of Presentment And Notice Of Dishonor
Michigan Law Review
The defendant was an accommodation indorser on a demand note without interest. Almost three years after date of the note the holder notified defendant that repeated attempts had been made to secure payment from the maker, but without avail, and that the defendant was expected to pay. This resulted in a conversation between holder and defendant in which defendant indicated that it was not convenient for him to pay the note, and some discussion occurred as to the defendant's giving collateral security and an effort on his part to get some protection from the maker, the holder allowing the note …
Bills And Notes - Negotiability - Accelerating Factors Extraneous To Instrument
Bills And Notes - Negotiability - Accelerating Factors Extraneous To Instrument
Michigan Law Review
Plaintiff was a good faith purchaser of a trade acceptance payable at a fixed date with a provision for acceleration at the option of the holder [1] " . . . upon the acceptor hereof suspending payment, [2] giving a chattel mortgage, [3] suffering a fire loss, [4] disposing of his business or [5] failing to meet at maturity any prior trade acceptance." In an action by the plaintiff after the fixed date of maturity, defendant-acceptor contended that accelerating provisions 3 and 5 rendered time of payment uncertain and the instrument non-negotiable. Held, the trade acceptance was negotiable. People's …
Bills And Notes - Restrictive Indorsement
Bills And Notes - Restrictive Indorsement
Michigan Law Review
Plaintiff sued defendant to enforce the collection of two promissory notes which defendant indorsed in blank to X Bank. X Bank indorsed the notes to "Y Bank, as trustee." Y indorsed the notes to plaintiff. All the indorsements were before maturity and for value. Held, on the pleadings, that the order overruling the demurrer to the declaration be sustained. In a concurring opinion, Brown, J., stated that an indorsement to a corporation or person with the words, "as trustee," after the name is not a restrictive indorsement within the meaning of the Uniform Negotiable Instruments Law, sec. 6796, 7, …
Bills And Notes - Negotiation - Implied Warranties
Bills And Notes - Negotiation - Implied Warranties
Michigan Law Review
In a suit by the payee against the maker of a note, the defense was a failure of the consideration, i.e., several assigned drafts had been paid at the time of the assignment. It did not appear whether these unendorsed drafts were order or bearer instruments. Held, under the Negotiable Instruments Law this is not a failure of consideration because the assignor warrants only facts within his knowledge, and evidence of knowledge of these facts by the assignee is admissible to rebut the implied warranty. Queensboro Nat. Bank. v. Kelly, 48 F.(2d)574 (1931).