against maker and indorser are set forth in the complaint in the following form: (Title.) (Commencement.) I. That the defendant, William Blake, at the city of New York, on the 8th day of June, 1865, made his promissory note, in writing, and delivered the same to plaintiff, of which the following is a copy: Without recourse. JOHN B. ASTOR. JOHN FOSTER. "$500. NEW YORK, June 8, 1865. “One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. "WILLIAM BLAKE.' II. That said defendant, John Foster, indorsed said note at the time William Blake delivered said note to plaintiff; and said note was so indorsed by said John Foster for the purpose of procuring for said William Blake a credit with plaintiff, knowing that it would be so applied; and the consideration for said note was delivered to said defendant, William Blake, on the credit of such indorsement; and that said note was so indorsed and so passed by the defendant, John Foster, to the plaintiff, for a valuable consideration then delivered. III. Plaintiff further states, on information and belief, that said note was duly presented for payment at maturity, but was not paid, of which John Foster had due notice. IV. That there is now due to plaintiff thereon, from defendants, the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. (Demand.) CHAPTER C. ACCOMMODATION PAPER. 1. A PERSON may make a promissory note for the accommodation of the payee, without receiving any value 1. When the maker of a promissory note makes the same for the accommodation of the payee, without receiving any value therefor, what does he loan to the payee? When the payee indorses such note for the therefor. The payee may indorse such note for the accommodation of the indorsee or subsequent holder, without receiving any value therefor. In this case the maker loans his credit to the payee, and the payee loans the borrowed credit of the maker and his own credit to the indorsee. Such indorsee may loan the borrowed credit of the maker, and the payee as indorser and his own credit as indorser, to a subsequent indorsee or holder. The maker is in this case called an accommodation maker. The payee is an accommodation indorser. The second indorser is also an accommodation indorser. The drawee of a bill of exchange may accept a bill for the accommodation of the drawer. The payee may indorse the bill for the accommodation of the indorsee. Where the note or bill has passed to a subsequent party for a full and valuable consideration, the maker, acceptor, and indorsers are as completely bound to pay the same, as they would be if they had received the amount named in the note or bill. They have loaned their credit, and are bound to pay the same to the subsequent holder. A promissory note or bill of exchange is only a representation of a certain value deposited in the hands of some person who is the primary debtor, and who is ultimately bound to deliver up the value he has received. A right of action continues with some collateral party to the note or bill, until it has been traced to the party who first received value therefor; and when such party has taken up the note or bill, all right of action thereon ceases. 2. Let us now suppose that A. makes an accommodation note, and delivers it to B. as payee. B. indorses the same without consideration, and delivers it to C. C. in accommodation of the indorsee, without receiving any value therefor, what does he loan to the indorsee? What is the maker and indorser in this case called? For what purpose may the acceptor of a bill of exchange accept the same? When an accommodation note or bill has passed into the hands of a holder for full value? What have they loaned? Of what is a promissory note and bill of exchange the representative? Until what does the right of action exist with some of the collateral parties? 2. What case is here supposed? How illustrated? Against whom dorses the same without consideration, and delivers the same to D. D. indorses the same, and delivers it to E. for its full value. E. indorses the same, and delivers it for value to F. F. indorses the same for value, and delivers it to G. This note may be illustrated by the following figure: A. Accommodation maker. B. Accommodation payee and indorser. C. Accommodation indorser. D. Indorser for full value. E. Indorser for full value. F. Indorser for full value. G. The holder for value. G. can commence an action against either or all the six antecedent parties. If F. pay the note, he may commence an action against either or all the five antecedent parties. If E. pay the note, he may commence an action against either or all the four antecedent parties. If D. pay the note, the right of action ceases to all parties. If A., the maker, pay the note, he has a right of action against B. for the amount he has paid, and B. has a right of action against C., and C. has a right of action against D. The right of action then ceases. It is to be kept prominently in mind that the note or bill is only a representative of value, to be delivered to the person having a right thereto, upon delivering up the note or bill as the voucher for the delivery of such value; and that the may G. commence an action? Against whom may F. commence an action? Against whom may E. commence an action? If D. pay the note, what will be the effect? If A. pay the note, what right of action has he? If B. pay the note, what right of action has he? If C. pay the note, what right of action has he? What is to be kept prominently in mind? person who receives the value is ultimately bound to deliver it in exchange for the note or bill; and that the note or bill then becomes void, and all right of action thereon extinguished. 3. In an action by an accommodation maker, who has been compelled to pay the note, against the payee, the facts constituting the cause of action are set forth in the complaint in the following form: (Title.) (Commencement.) I. That at the city of New York, on the 8th day of June, 1865, plaintiff made his promissory note in writing, and delivered the same to defendant, of which the following is a copy: Indorsed, JOHN B. ASTOR. "$500. NEW YORK, June 8, 1865. "One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. "JOHN FOSTER." II. That this plaintiff never received any consideration for the said note; but it was an accommodation note, made and delivered to the defendant at his request, and upon his promise that he would pay the same at maturity. III. That, as plaintiff is informed and believes, the defendant thereafter, and before the maturity of said note, negotiated the same for value. IV. That defendant failed to pay said note at maturity, and that this plaintiff was thereupon compelled to pay it, and did, at the city of New York, on the 15th day of July, 1865, pay the same, and that no part of the same has been paid to plaintiff; but the defendant is justly indebted to him thereon in the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. (Demand.) (Verification.) 4. When the drawce of a bill of exchange refuses to accept the bill, any person may accept the same for the 3. In an action by an accommodation maker, who has been compelled to pay the note, against the payee, how are the facts constituting the cause of action set forth in the complaint? 4. When the drawee of a bill of exchange refuses to accept the bill, for whose honor may any other person accept the same? What is this honor of the drawer or of any indorser, or for the honor of the bill. This is called an acceptance "supra protest." The acceptance of a bill supra protest after non-acceptance, imports an obligation, on the part of the acceptor for honor, that if the bill is not paid by the drawee upon due presentment at its maturity, and it is then duly protested for non-payment, and due notice of dishonor given to the acceptor for honor, he will pay the same. Presentment to the drawee, protest, and notice of dishonor are indispensable to render the liability of the acceptor for honor absolute. The acceptance for honor enures to the benefit of all parties to the bill, subsequent to the party for whose honor it was accepted. Presentment for payment to the acceptor for honor must be made at maturity; and if a foreign bill, it must be protested, and notice given to the drawer, in order to render him absolutely liable. 5. When an action is commenced by the payce against the drawer and acceptor for honor, the facts constituting the cause of action are set forth in the complaint in the following form: (Title.) (Commencement.) I. That at the city of New York, on the 8th day of June, 1865, the defendant, William Blake, made his bill of exchange in writing, dated on that day, and directed the same to one William Jones, and thereby required said William Jones to pay to the order of plaintiff, one month after the date thereof, five hundred dollars, value received, and delivered the same to plaintiff. II. That then and there the said bill of exchange was duly presented to the said William Jones for acceptance, but was not accepted, of which the defendant, William Blake, had due notice. III. That then and there the defendant, John Foster, accepted said bill of exchange for the honor of the said William Blake. acceptance called? What is the obligation on the part of the acceptor for honor? What are indispensable to render the liability of the acceptor for honor absolute? To whose benefit does the acceptance for honor enure? Must the bill be presented to the acceptor for honor? 5. When an action is commenced by the payee against the drawer and acceptor for honor, how are the facts constituting the cause of action set forth in the complaint? |