(Download) "National Park Bk. of N.Y. v. American B. Co." by Supreme Court of Montana ~ eBook PDF Kindle ePub Free
eBook details
- Title: National Park Bk. of N.Y. v. American B. Co.
- Author : Supreme Court of Montana
- Release Date : January 25, 1927
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 66 KB
Description
Pledges ? Negotiable Instruments ? Payment Pending Suit to Enforce Lien ? Failure to Pay Costs and Attorneys Fee ? Action Survives to Recover Same. Pledges ? Negotiable Instruments ? Pledgee may Sue in Own Name. 1. Under section 8312, Revised Codes, 1921, a pledge may sue in his own name upon a negotiable promissory note transferred before maturity as collateral security. Same ? Legal Title to Pledged Note Remains in Pledgor ? Pledgees Property Interest Depends on Possession. 2. The legal title to a promissory note pledged as security remains in the pledgor, and the pledgees property in it depends upon his possession of it. Same ? Promissory Notes Pledged Held by Pledgor in Trust for Pledgee Deemed in Possession of Pledgee. 3. Where promissory notes executed to a bank were pledged by it to another bank but were held by the former in trust for the latter, they were as effectually in the possession of the pledgee bank at the time it brought suit to foreclose its lien as though physically in its own vault. Same ? Existence of Principal Debt Requisite to Enforce Payment of Collateral Held in Pledge. 4. Without the existence of the principal debt the pledgee cannot enforce payment of the collateral security held by him. Same ? Promissory Notes Held in Pledge and Principal Obligation Paid After Institution of Suit ? Action Survives to Recover Costs and Attorneys Fee. 5. Where at the time suit was brought to foreclose a pledge on promissory notes neither the principal obligation nor the notes had been paid but were paid thereafter with the exception of costs of suit and attorneys fees provided for in the notes, the cause of action survived to recover them as a balance due on the notes. Promissory Notes ? Provision for Costs and Attorneys Fee Does not Render Sum Payable Uncertain. 6. Under section 8409, Revised Codes, 1921, the sum mentioned in a promissory note as being payable is made certain although in addition to the principal sum it calls for payment of costs and attorneys fees in case the payee has to enforce collection. - Page 543 Same ? Attorneys Fee ? Payment of Note Without Fee Does not Discharge Note in Full ? Attorneys Lien. 7. While the client controls the course of litigation, including compromises and settlements, if a settlement is made by the client it is subject to the attorneys claim for fees, and the parties making the settlement are bound to take notice of such claim (sec. 8993, Rev. Codes, 1921); and while the obligation to pay attorneys fees in case enforced collection of a promissory note becomes necessary is imposed upon the maker in favor of the holder of the note and not in favor of the attorney, payment of the principal sum exclusive of the attorneys fee during the pendency of an action to enforce payment does not discharge the note in full. Pledges ? Contract Giving Bank Right to Sue on Pledged Notes Held by It in Trust for Pledgee Does not Deprive Pledgee of Right to Bring Action. 8. Where a contract of pledge of promissory notes provided that pledgor bank should hold the notes in trust for the pledgee bank and authorized the former to enforce payment, the pledgee did not thereby surrender its right to bring action itself.