The Federal Reporter (Annotated), Volume 174: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. January-March, 1910. Page: 22
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174 FEDERAL REPORTER.
NATIONAL BANK OF COMMERCE OF KANSAS CITY, MO., et al. v.
ROCKEFELLER.
(Circuit Court of Appeals, Eighth Circuit. October 15, 1909.)
No. 2,861.
1. GUARANTY (5 87*)-CONSTRUCTION OF CONTRACT-COMMENCEMENT.
It is a rule of very general application that all guaranties are pros-
pective and not retrospective in operation, unless the contrary appears by
express words or by necessary implication; and a written guaranty given
to a bank of all debts which a corporation "may from time to time con-
tract or become liable for to said bank, however said debts may be con-
tracted or evidenced," cannot be construed to cover a note previously given
by the corporation to the bank, nor renewal notes, given after the guar-
anty was executed, for the sole purpose of extending the time of payment
of the same indebtedness.
[Ed. Note.-For other cases, see Guaranty, Cent. Dig. I 40; Dec. Dig.
I 37.*]
2. GUARANTY (5 3, 27*)-REQUISITES-PAROL GUARANTY.
A parol statement, made by a prospective stockholder of a corporation
to the president of a bank, that he would like to have the corporation do
business with the bank, and that he "was going to give a guaranty to pro-
teet" the bank, did not constitute a guaranty, nor a present binding prom-
ise to give one, but was only an expression of a general purpose to do
something, which would not bind him until done; nor can it affect the
construction of a subsequently given written guaranty, clear and definite
in its terms, which must be conclusively presumed to express the final
agreement of the parties and to measure their rights and obligations.
[Ed. Note.-For other cases, see Guaranty, Dec. Dig. I 3, 27.*]
8. BILLS AND NOTEs (5 103*)-CONSIDERATION-MISREPRESENTATIONS.
Where a guarantor of an indebtedness from a corporation to a bank, in
settling his liability to the bank after the corporation became insolvent,
accepted the representations of the bank, implied, if not expressed, that a
note of the corporation then held by the bank represented an indebtedness
which was all within the guaranty, and paid the full amount due thereon
in cash and by giving his own note, but it afterward appeared that the
note so taken up was in large part in renewal of an indebtedness ante-
dating the guaranty and not covered thereby, his own note to that extent
was without consideration, and on payment of the remainder he was en-
titled in equity to its cancellation.
[Ed. Note.-For other cases, see Bills and Notes, Dec. Dig. 5 103.*]
4. SUBROGATION ( 7*)-GUABANTOm .
A corporation executed to a bank its note, which recited that "to secure
the payment of this note, and of any and all other indebtedness which we
now owe to said bank, or may owe it any time before the payment of this
note, we have hereto attached as collateral security the following notes,
* * * and hereby authorize [the cashier], * * * on default in the
payment of this note, * * * to sell said collateral." Held, that such
collateral was pledged primarily to secure payment of the note to which it
was attached, and secondarily, but nio less effectually, to secure the pay-
ment of any other indebtedness owing by the corporation to the bank when
such note matured, and that a guarantor who paid the note was not en-
titled by subrogation to the collateral, where a prior indebtedness of the
corporation to the bank remained unpaid.
[Ed. Note.-For other cases, see Subrogation, Dec. Dig. 7.'*]
*For other cases see same topic & j NUMBER in Del & Am. Digs. 1907 to date, & Rep'r Indexes
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The Federal Reporter (Annotated), Volume 174: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. January-March, 1910., legislative document, 1910; Saint Paul, Minnesota. (https://digital.library.unt.edu/ark:/67531/metadc38220/m1/34/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.