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HINSDALE v. JERMAN
Contract — Note — Pledge of Collaterals — Rights of Payee of Note.
For "money borrowed" J. gave his note to H. and pledged certain shares of stock as collateral security. A contemporaneous agreement between them provided that all assessments upon the stock should be paid equally by them and the stock should be sold to pay the note; any surplus up to a certain amount to go to J. and all beyond that amount to H. The stock became worthless and unsalable: Held, that the transaction was merely a loan of money secured by collaterals, and, the security having become worthless, H. is entitled to enforce the secondary liability of the maker of the note.
MACRAE, J., did not sit on the hearing of this case.
PER CURIAM.
The note set out in the complaint, with the contemporaneous agreement between the plaintiff and defendant, which the latter put in evidence, constituted the contract between the (158) parties to this action. We think the construction put by his Honor on this written contract was correct, and that the transaction was merely a loan of money, secured by collaterals which have become worthless, thus leaving no course open to the plaintiff to recover the money he loaned to defendant except to enforce the secondary liability of the maker of the note. It seems to us very evident that he has the right so to do.
Affirmed.
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