BILLS AND NOTES - LIABILITY OF "IRREGULAR lNDORSER" OF CHOSE IN ACTION

Authors

Gerald L. Stoetzer, University of Michigan Law SchoolFollow

Abstract

Trustee bank, for the purpose of refinancing a mortgage on trust property, executed a trust deed and instrument, designated as the "principal note," which disclaimed personal liability of trustee and beneficiaries, expressly providing that the sole remedy upon default of payment of "note" or interest installment should be by foreclosure of the trust deed. Before delivery, the beneficiaries of the trust indorsed the "note" though not parties thereto. Upon default the holder brought this action against one of the beneficiaries on his anomalous indorsement. Held, (1) that the "note" was a mere chose in action; (2) that an irregular indorser thereof was not liable ipso facto on such an indorsement; and (3) that extrinsic evidence of contract of guaranty or other relationship would be admissible to establish such liability. Stewart v. McIntosh, 291 Ill. App. 65, 9 N. E. (2d) 427 (1937).

Recommended Citation

Gerald L. Stoetzer, BILLS AND NOTES - LIABILITY OF "IRREGULAR lNDORSER" OF CHOSE IN ACTION, 36 Mich. L. Rev. 481 (1938).
Available at: https://repository.law.umich.edu/mlr/vol36/iss3/11