189 S.E. 779 | N.C. | 1937
Civil action to recover on contract.
The facts are these: Prior to 15 December, 1930, the defendant became indebted to the plaintiff in the principal sum of $1,452.38, represented by time certificate of $1,256.67 (reissued 30 October, 1931), and checking account of $195.71. On said date the defendant, being financially embarrassed, was allowed to operate only under restrictions, and continued under such restrictions until 14 February, 1934, when it again resumed its full status as a solvent banking institution. On 12 February, 1934, having in its possession a past-due note of $1,000, executed by C. L. Ingram and endorsed and "payment guaranteed at any time after maturity" by plaintiff, the same was set off and charged against plaintiff's account. Defendant admits its liability to plaintiff for the balance of said account.
The court, being of opinion that the defendant had the right to charge plaintiff's account with said note, upon which he was endorser and guarantor, before it was barred by the statute of limitations, so instructed the jury and gave judgment accordingly, from which the plaintiff appeals, assigning errors.
It will be observed that the plaintiff was not only an endorser of the Ingram note, but also a guarantor. As such, the relation of debtor and creditor existed between him and the defendant, and under the decision inTrust Co. v. Trust Co.,
The pertinent decisions are to the effect that "a bank has the right to apply the debt due by it for deposits to any indebtedness by the depositor, *278
in the same right, to the bank, provided such indebtedness to the bank has matured." Hodgin v. Bank,
Had the plaintiff been simply an endorser, and not a guarantor of the Ingram note, a different question might have arisen. Harrison v. Harrison,
The verdict and judgment will be upheld.
No error.