Parker v. . Sutton

Merrimon, J. (after stating the case). The note sued upon was plainly a negotiable instrument, and might, by indorsement of the payee thereof, be put upon the market and bought and sold indefinitely. The original parties to it treated it as “ accommodation paper,” and the facts show that the chief and material part of their purpose was to enable the maker thereof to borrow money upon it. It was expected that he would get the money from one of the banks in Fayetteville, but not necessarily from a bank, or in that town. If it had been so intended, some particular restriction in this respect would have been set forth in or about the note, but it was left at large — entirely without such restriction — to be sold to any person who might buy it. If a bank had purchased it, it could at once have sold it to the intestate of the plaintiff or any other person in the course of business. There was nothing in its nature, or in the purpose of the parties in connection with it, that rendered the sale of it to a bank necessary or at all material to its sufficiency or efficiency as a negotiable instrument; nor would the mere sale of it to a bank have given the payee, who indorsed it, any material legal advantage. There was no reason — certainly none that appears — why the intestate of the plaintiff should not have bought it on the same footing as a *194 bank, or any other person might have done. The simple fact that he had knowledge of the “ understanding,” that the money was to be obtained from a bank in the town mentioned, did not render it in any sense fraudulent on his part to buy it. This is a stronger case against the indorsee than that of Parker v. McDowell, 95 N. C., 219. The note in that case was by its terms made “negotiable and payable” at a particular bank named. It was “ an accommodation paper” — was not sold to the bank, but to a different person. Nevertheless, it was held that the indorser was liable. The objection, therefore, that the intestate of the plaintiff had notice that it was “ understood and agreed ” that the note should be “negotiable in one of the banks of Fayette-ville,” cannot be sustained, and the judgment must be affirmed. Judgment affirmed.