39 Ga. App. 42 | Ga. Ct. App. | 1928
Osborn executed a negotiable promissory note to Bishop Banking Company, and that company transferred it to the War Einance Corporation, which placed the note back in the hands of the banking company, as its special agent, under a trust receipt, for collection. On the trial of the suit on the note, brought by the War Einance Corporation against Osborn, he testified, in support of his plea of payment, that he did not know that the bank had traded off the note,.and that upon being called upon by it for payment he instructed the president of the bank to convert into cash an unmatured time-certificate held by him against the bank, and to apply the proceeds, together with certain other funds held by the bank on deposit for him, to the note. The defendant swore that the bank president promised to comply with these instructions. It appears that the bank went into liquidation without compliance with the instructions. The court directed a verdict in favor of the plaintiff, and the defendant excepted. Held: While possession of the negotiable note by the bank indicated its authority to receive payment thereon, so that payment in cash by the maker to the bank as the special agent of the holder would absolve the maker from further liability (Civil Code of 1910, § 3578; Sherrod v. Springfield Baptist Church, 21 Ga. App. 200, 93 S. E. 1009), nothing save an agreed settlement of the note with the holder, or payment in cash to the bank,
Judgment affirmed.