187 Ind. 307 | Ind. | 1918
— Appellee, as holder by endorsement before maturity, obtained judgment against appellant on the following promissory note:
“No........... Due.......... $5,000.00
“Indianapolis, Ind., Nov. 1, 1912.
“June 1st, 1913, after date we or either of us promise to pay to the order of Columbus Securities Company, Five Thousand Dollars, negotiable and payable at Aetna Trust and Savings Company, Indianapolis, Indiana, with eight per cent, interest from maturity and attorney’s fees. Value received without any relief whatever from valuation or appraisement laws. The drawers and endorsers severally waive presentment for payment, protest and notice of protest and nonpayment of this note.
“Address............ Lynn B. Millikan.”
We therefore hold that the note in suit is negotiable as an inland bill of exchange.
Appellant’s eighth paragraph of answer is in substance that appellee at the time of the purchase of said note executed in payment therefor a certificate of deposit, as follows:
“Security Trust Company.
“Certificate of Deposit
No. 2341
Indianapolis, Ind., Dec. 4th, 1912.
‘American Standard Life Assurance Co. has deposited with this company Five Thousand Dollars payable to the order of same, in current funds on the return of this certificate properly endorsed. June 1st, 1913. With interest at two per cent per annum for the time specified only. Not subject to check.
Countersigned:
R. A. Young, Secretary
Bert McBride, President.”
Then this paragraph is in substance that the note was
Appellant contends that this certificate is not negotiable because it is payable in “current funds.” One of the elements of negotiability is that an instrument be payable in money, and the question is whether “current funds” means money. There is some confusion in the decisions of this court on this point. In the case of Drake v. Markle (1863), 21 Ind. 433, 83 Am. Dec. 358, a certificate of deposit payable'“in currency” was held to be payable in money and negotiable. Although no particular stress seems to have been laid upon the point of its being payable in “currency,” yet the court sets out the instrument and seems to have had this question in view. In the case of National State Bank, etc. v. Ringel (1875), 51 Ind. 393, this court held that a certificate of deposit payable “in current funds” was not negotiable because it lacked one of the essentials, not being payable in money.-
Appellant sets out, as a part of this paragraph, what is termed a “Syndicate Agreement” which he signed, in which he was given certain options as to stock in the Columbus Securities Company. There is nothing in this agreement to destroy the good faith of a purchaser of the note in suit, even if such purchaser had notice. True, appellant alleges that the note was to be deposited with the trustee under this syndicate agreement and
Other questions are presented which need not be decided, because they will not arise on retrial of this cause. The quality of the note in suit and the certificate of deposit given therefor being determined, the pleadings in this case may be confined to less confusing limits.
Judgment reversed, with instructions to overrule the demurrer to the third paragraph of answer and for other proceedings not inconsistent with this opinion.
Note. — Reported in 118 N. E. 568. Bills and notes: naming place of payment in note, effect, 34 Am. Dec. 308; meaning of “at” when used to denote place of payment, Ann. Cas. 1912B 1071. See under (1-3) 8 C. J. 142; (4) 8 C. J. 147; (5) 8 C. J. 916, 930; (8) 8 C. J. 131; (9) 19 Cyc 1288.