6 A.2d 273 | Pa. | 1939
Appellee bank held a note on which William L. Jones, appellant's decedent, was one of two accommodation endorsers for Frank E. Schaule. Jones having died before the note matured, appellee obtained several new notes from Schaule, endorsed by the survivor. This was done without the knowledge of appellant. Appellee continued to carry on its books the original note on which Jones was endorser. After default on the last new note given, appellee sued his estate for the balance due on the original instrument. Appellant contends that it was discharged by the acceptance of the new notes and by an extension of time to the maker. The *579 trial judge heard the case without a jury and entered judgment for the bank.
Three questions are presented which will be discussed. The contention that the note was rendered nonnegotiable by the endorsers' confession of judgment is sufficiently answered by the Negotiable Instruments Law of May 16, 1901, P. L. 194, Section 47. It is immaterial on this appeal, however, whether the instrument is negotiable or nonnegotiable, considering the terms of the endorsement or assignment executed by decedent.
The evidence shows that the new notes were given as collateral security for payment of the original note. It is a customary practice of banks to take new notes in this manner, as collateral, where one of the endorsers dies and it is desired to hold his estate liable. The effect of the new notes was a question of fact, the presumption being that they were given solely as collateral: Second National Bank v. Graham,
Even if the original note were nonnegotiable, the result would be the same. A guarantor or surety is not released by the creditor's acceptance of additional security from the principal debtor after the maturity of the obligation, unless a binding agreement to extend the time of payment is entered into:Shaw Leigh v. The *580 First Associated Ref. Presby. Church,
It was not error for the trial judge to refuse an amendment of the affidavit of defense at the trial so as to admit the plea of nonjoinder. See Boyle v. Breakwater,
Appellant contends that the specific findings of fact are insufficient to support the judgment. The procedure under the Act of April 22, 1874, P. L. 109, Section 2, as amended July 10, 1935, P. L. 640, Section 1, does not require all of the subsidiary and ancillary facts to be listed separately by the trial judge. Counsel should request such findings in the proper way if he believes their absence might prejudice his case. SeeHall Co., Inc., v. Lyon, Singer Co.,
Judgment affirmed.