96 Iowa 491 | Iowa | 1895
I. The petition alleges that the defendants Sigstad executed and delivered to the defendant Bangs their promissory note for two hundred and twenty-five dollars, dated October 23, 1891, ■and due October 23,1892, and drawing eight per cent, interest; that Bangs sold and delivered the note to the Valley Bank, and said Bank sold the same to the plaintiff; that Bangs, when he sold the note, guarantied the payment of the same. Other necessary allegations are made as to the incorporation of plaintiff, that the note is unpaid, etc. The note reads as follows: “$225. Belmond, Iowa, Oct. 23,1891. On or before the 23rd day of October, 1892, I, we, or either of us, promise to pay to B. M. Bangs, or bearer, two hundred and twenty-five ($225) dollars, value received, payable at the office of Jamison, at Belmond, with interest at the rate of eight per cent, per annum, from date, payable annually. Should any of the interest or principal not be paid when due, it shall bear interest at the rate of 8 per cent, per annum, and a failure to pay any of said interest within five days after due shall, at the option of said obligee or his legal representatives, cause the whole note to become due and ■collectible at once. The makers, indorsers and guarantors of this note agree to pay all expenses of collection, including attorney’s fee, if suit is brought hereon, and hereby waive presentment of payment, notice of non-payment, protest, and notice of protest, ■and due diligence in bringing suit against any party
Now, to determine whether the matter written over defendant’s name was consistent with the obligation he has assumed as an indorser, we must look to the body of the note, as well as to the liabilities which the law merchant attaches to one who indorses a note in blank. Under his contract as an indorser, he became liable to pay the note when it matured, in case the makers failed to do so. He was not entitled to a demand, or to notice of nonpayment, protest, or
It is said by counsel for the defendant that the contract of indorsement is very different from a contract of guaranty, and that by writing words of guaranty the obligation of defendant was changed from that of an indorser to that of a guarantor, — that the liability was thereby enlarged. Belden v. Hann, 61 Iowa, 42 (15 N. W. Rep. 591); Robinson v. Lair, 31 Iowa, 9. While ordinarily, and in the absence of such words as are found in the body of the note in suit, such might be the case and an enlarged liability result, still such result, it seems to us, cannot follow when, by the contract of indorsement, gathered as well from the terms of the body of the note as from the law merchant, the liability of the indorser is absolute, in the absence of payment by the makers, and without any steps whatever being taken by the holder of the paper. In Belden’s Case the endorsement was in blank, the holder wrote above it the words, “Gaurantee payment at maturity to bearer,” and it was held that