leased from their responsibility. The indorsers are bound in the order of their indorsements, and no indorser can look to those below him upon the bill or note for payment. Each must look to the primary debtor, and the indorsers between himself and the primary debtor. It was formerly held that the payee could not maintain an action against an indorser on a note or bill. 8. In the case of Moore against Cross, reported in vol. xxiii. of Barbour's Reports, it was held that the payee may maintain an action against an indorser on a promissory note payable to payee's order. When the note is made by the maker, and indorsed by the indorser, and delivered to the payee for value, on the credit of such indorsement, and the indorser indorsed the same for the purpose of procuring for the maker a credit with the payee, the payee can maintain an action against the indorser. The plaintiff, in such case, must make a special allegation of the facts relative to the transaction, that may operate to charge the indorser in the payee's favor. The payee may indorse the note "without recourse," and sue as a subsequent holder. If a note is drawn payable to payee, or bearer, and is passed without the indorsement of the payee, and is subsequently indorsed, and it again come into the possession of the payee, the payee may maintain an action thereon against the indorsers. 9. The facts constituting the cause of action by payee be indorsed by Richard Roe, and delivered to John Foster, what will be the effect? If John Foster's indorsement were qualified, as in the second form, what would be the effect? In what order are the indorsers bound? Can an indorser look for indemnity to the indorsers below him on the note or bill? To whom must each look for indemnity? What was formerly held as to the payee's maintaining an action against an indorser ? 8. What was held by the New York Court of Appeals in the case of Moore against Cross? When can the payee maintain an action against the indorser? What special allegation must the plaintiff make in such case? How may the payee indorse the note? If the note is drawn payable to payee, or bearer, and is passed without the indorsement of the payee, and is subsequently indorsed, and it again come into the possession of the payee? 9. How are the facts constituting a cause of action by payee against maker and indorsers set forth in the complaint? against maker and indorser are set forth in the complaint in the following form: (Title.) I. That the defendant, William Blake, at the city of New York, on the 8th day of June, 1865, made his promissory note, in writing, and delivered the same to plaintiff, of which the following is a copy: Without recourse. JOHN B. ASTOR. "$500. NEW YORK, June 8, 1865. "One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. "WILLIAM BLAKE." II. That said defendant, John Foster, indorsed said note at the time William Blake delivered said note to plaintiff; and said note was so indorsed by said John Foster for the purpose of procuring for said William Blake a credit with plaintiff, knowing that it would be so applied; and the consideration for said note was delivered to said defendant, William Blake, on the credit of such indorsement; and that said note was so indorsed and so passed by the defendant, John Foster, to the plaintiff, for a valuable consideration then delivered. III. Plaintiff further states, on information and belief, that said note was duly presented for payment at maturity, but was not paid, of which John Foster had due notice. IV. That there is now due to plaintiff thereon, from defendants, the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. (Demand.) CHAPTER C. ACCOMMODATION PAPER. 1. A PERSON may make a promissory note for the accommodation of the payee, without receiving any value 1. When the maker of a promissory note makes the same for the accommodation of the payee, without receiving any value therefor, what does he loan to the payee? When the payee indorses such note for the therefor. The payee may indorse such note for the accommodation of the indorsee or subsequent holder, without receiving any value therefor. In this case the maker loans his credit to the payee, and the payee loans the borrowed credit of the maker and his own credit to the indorsee. Such indorsee may loan the borrowed credit of the maker, and the payee as indorser and his own. credit as indorser, to a subsequent indorsee or holder. The maker is in this case called an accommodation maker. The payee is an accommodation indorser. The second indorser is also an accommodation indorser. The drawee of a bill of exchange may accept a bill for the accommodation of the drawer. The payee may indorse the bill for the accommodation of the indorsee. Where the note or bill has passed to a subsequent party for a full and valuable consideration, the maker, acceptor, and indorsers are as completely bound to pay the same, as they would be if they had received the amount named in the note or bill. They have loaned their credit, and are bound to pay the same to the subsequent holder. A promissory note or bill of exchange is only a representation of a certain value deposited in the hands of some person who is the primary debtor, and who is ultimately bound to deliver up the value he has received. A right of action continues with some collateral party to the note or bill, until it has been traced to the party who first received value therefor; and when such party has taken up the note or bill, all right of action thereon ceases. 2. Let us now suppose that A. makes an accommodation note, and delivers it to B. as payee. B. indorses the same without consideration, and delivers it to C. C. in accommodation of the indorsce, without receiving any value therefor, what does he loan to the indorsee? What is the maker and indorser in this case called? For what purpose may the acceptor of a bill of exchange accept the same? When an accommodation note or bill has passed into the hands of a holder for full value? What have they loaned? Of what is a promissory note and bill of exchange the representative? Until what does the right of action exist with some of the collateral parties? 2. What case is here supposed? How illustrated? Against whom dorses the same without consideration, and delivers the same to D. D. indorses the same, and delivers it to E. for its full value. E. indorses the same, and delivers it for value to F. F. indorses the same for value, and delivers it to G. This note may be illustrated by the following figure: A. Accommodation maker. B. Accommodation payee and indorser. C. Accommodation indorser. D. Indorser for full value. E. Indorser for full value. F. Indorser for full value. G. The holder for value. G. can commence an action against either or all the six antecedent parties. If F. pay the note, he may commence an action against either or all the five antecedent parties. If E. pay the note, he may commence an action against either or all the four antecedent parties. If D. pay the note, the right of action ceases to all parties. If A., the maker, pay the note, he has a right of action against B. for the amount he has paid, and B. has a right of action against C., and C. has a right of action against D. The right of action then ceases. It is to be kept prominently in mind that the note or bill is only a representative of value, to be delivered to the person having a right thereto, upon delivering up the note or bill as the voucher for the delivery of such value; and that the may G. commence an action? Against whom may F. commence an action? Against whom may E. commence an action? If D. pay the note, what will be the effect? If A. pay the note, what right of action has he? If B. pay the note, what right of action has he? If Č. pay the note, what right of action has he? What is to be kept prominently in mind? person who receives the value is ultimately bound to deliver it in exchange for the note or bill; and that the note or bill then becomes void, and all right of action thereon extinguished. 3. In an action by an accommodation maker, who has been compelled to pay the note, against the payee, the facts constituting the cause of action are set forth in the complaint in the following form: (Title.) (Commencement.) I. That at the city of New York, on the 8th day of June, 1865, plaintiff made his promissory note in writing, and delivered the same to defendant, of which the following is a copy: Indorsed, JOHN B. ASTOR. " $500. NEW YORK, June 8, 1865. "One month after date, I promise to pay John B. Astor, or order, five hundred dollars, value received. "JOHN FOSTER." II. That this plaintiff never received any consideration for the said note; but it was an accommodation note, made and delivered to the defendant at his request, and upon his promise that he would pay the same at maturity. III. That, as plaintiff is informed and believes, the defendant thereafter, and before the maturity of said note, negotiated the same for value. IV. That defendant failed to pay said note at maturity, and that this plaintiff was thereupon compelled to pay it, and did, at the city of New York, on the 15th day of July, 1865, pay the same, and that no part of the same has been paid to plaintiff; but the defendant is justly indebted to him thereon in the sum of five hundred dollars, with interest thereon from the 11th day of July, 1865. (Demand.) (Verification.) 4. When the drawee of a bill of exchange refuses to . accept the bill, any person may accept the same for the 3. In an action by an accommodation maker, who has been compelled to pay the note, against the payee, how are the facts constituting the cause of action set forth in the complaint? 4. When the drawee of a bill of exchange refuses to accept the bill, for whose honor may any other person accept the same? What is this |