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1933

Negotiable Instruments Law

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Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Due Date But Before Bonds Presented, Ralph W. Aigler Dec 1933

Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Due Date But Before Bonds Presented, Ralph W. Aigler

Michigan Law Review

In Morley v. University of Detroit, decided May 16, 1933, the Supreme Court of Michigan reaches a conclusion not only of intense interest as a matter of legal doctrine, but also tremendously important, if followed, in determining the location of losses that may run into large sums. The defendant had floated a large bond issue secured by trust mortgage to a Trust Company. Among the obligor's undertakings in the mortgage was one to the effect that it would punctually pay the principal and interest of every bond according to the terms of the bond and coupons and would "deposit …


Bills And Notes-Warranty Of Qualified Indorser -When Instrument "Valueless" Dec 1933

Bills And Notes-Warranty Of Qualified Indorser -When Instrument "Valueless"

Michigan Law Review

In an action based upon the vendor's warranty in the sale of a note as set forth in the N.I.L., sec. 65 (4), it being alleged that the maker was insolvent and the mortgaged property worth much less than the debt at the time of the transfer of the note and that both such facts were known to the transferor, held, a ruling sustaining a demurrer should be affirmed. Leekley v. Short, (Iowa 1933) 249 N. W. 363.


Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town Jun 1933

Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town

Michigan Law Review

The plaintiff, payee of a check, received it on December 1st early enough to present it for payment on that day to the drawee bank which was located in the same town. Instead of presenting it to the drawee directly, he deposited the item in another local bank on December 2d. The latter presented it to the drawee through the clearing house on December 3d, but it was not paid, the drawee having closed its doors the same day. If the check had been presented on December 2d it would have been paid, since there were enough funds in the …


Bills And Notes-Acceleration Clause Affecting Negotiability May 1933

Bills And Notes-Acceleration Clause Affecting Negotiability

Michigan Law Review

A promissory note maturing by its terms ninety days after date contained a provision authorizing the payees to declare the note due "at any time they may deem this note insecure, even before the maturity of the same." In an action against indorsers, it was held that the note was rendered non-negotiable by the acceleration provision. Guio v. Lutes, (Ind. App. 1933) 184 N. E. 416.


Bills And Notes-Liability Of An Acceptor On An Altered Instrument Jan 1933

Bills And Notes-Liability Of An Acceptor On An Altered Instrument

Michigan Law Review

Section 62 of the N. I. L. (Uniform Negotiable Instruments Law) provides: "The acceptor by accepting the instrument engages that he will pay it according to the tenor of his acceptance; and admits,-- (1) The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument, and (2) The existence of the payee and his then capacity to indorse." A recent California case decided that by force of this section, a bank certifying and paying a check on which the payee's name had been changed could not recover the money from the holder …