42 N.J.L. 177 | N.J. | 1880
The opinion of the court was delivered by
The error assigned for the reversal of this case, is that the note in suit was accommodation paper, and was given for a certain purpose, and was misapplied by the payee. The misapplication alleged consisted in this: the plaintiff in error testified at the trial, that he lent' his credit to one Sandford, with the understanding that the note thus made was “ to be by him deposited, temporarily, as collateral security for a loan to be made to him.” Instead of obtaining a new loan, and giving this note to the lender, as collateral, what Sandford did was to deposit it with the First National Bank of Jersey Gity, the defendant in error, as security for moneys already owing from him to that institution. The note, therefore, instead of standing as security for a present loan, was placed as security for a past loan, and it is urged that this was a misappropriation that avoided the note in the hands of a party taking it for value, but who was chargeable with notice. But this contention cannot be made to harmonize with the legal rule established on this subject, by this court, in the case of Duncan, Sherman & Co. v. Gilbert,
Upon the above point, the case was properly tried at the-Circuit, and also with respect to the question of interest.
The judgment should be affirmed.
For affirmance—The Chancellor, Chief Justice, Depub, Dixon, Reed, 'Scudder,' Van Syckel, Clement,. Dodd, Green, "Wales—11.
For reversal—None.