Western National Bank v. Wood — 42 N.Y. St. Rep. 675

Majority

p. 675

The Western National Bank, Resp’t, v. Frederick Wood, Impl’d, App’lt. The Homestead Bank, Resp’t, v. Frederick Wood, Impl’d, App’lt.

(City Court of New York,

General Term,

Filed December 29, 1891.)

Headnote

1. Bills and notes.

Notes delivered to a bank for advances to complete buildings upon consideration being advanced become negotiable property and as such transferable by delivery.

2. Same—Defense.

Neither an agreement to renew the note nor an agreement to make further advances will constitute a defense or counterclaim in an action on such note.

Appeals from judgments on verdicts directed in favor of plaintiffs.

Smith, Bowman & Glose, for app’lt; G. F. MacLean, for resp’ts.

The two cases are alike, except in one- respect In one, there is a counterclaim and in the other, none. The actions are on notes delivered to the Homestead Bank, for advances made to complete certain buildings. Consideration having-been advanced on the notes, they became negotiable property, and as such transferable by delivery. They were so transferred to the-plaintiff, presumably for value and before maturity, and the plaintiff became entitled to recover on them.

The matters pleaded in defense, and attempted to be proved, whether regarded as an agreement to renew the notes, 1 City Ct., 264, or as an agreement by the bank to loan additional moneys, constituted neither a defense nor counterclaim to the notes in suit, and the verdict ordered in favor of the plaintiffs, was rightly directed, and the judgments entered on them must be affirmed, with costs.

McCarthy, J., concurs.