American Trust Co. v. Jones

STURTEVANT, J.

The plaintiff sued on a promissory note. The trial court made findings in favor of the plaintiff and from the judgment entered thereon Frank Wishon, one of the defendants, has appealed.

On September 26, 1926, the American Bank and the Mercantile Trust Company merged and became the Mercantile Trust Company of California. On December 27, 1926, a decree of court was duly rendered changing its name to American Trust Company. On July 8, 1929, the defendant executed and delivered to that company a note which, among other things, provided as follows:

“$5,000.00

“In consideration of the sum of One Dollar to the undersigned in hand paid by Mercantile Trust Company of California, a corporation, created, organized and existing under and by virtue of the laws of the State of California, the receipt whereof is hereby acknowledged, and for divers other valuable considerations, the undersigned—jointly and severally, promise after demand, to pay to the order of said Mercantile Trust Company of California (hereinafter called Bank), at its San Jose Branch, in San Jose, California, in Gold Coin of the United States of America, the balance both of principal and interest due said Bank for or on account of any and all sums of money which the said bank may have heretofore advanced or loaned, or may hereafter advance or loan to J. W. Rowntree (hereinafter called the Borrowers), or which may be drawn from said Bank by the said Borrowers, (or any of them), by check or checks drawn by said Borrowers, (or any of them), or upon promis

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sory notes made by or endorsed by said Borrowers, (or any of them), and held by said Bank, or upon bills receivable, drafts, overdrafts, acceptances, or other evidences of indebtedness, said advances and loans being made at the special instance and request of the undersigned, and upon the faith of this undertaking; and the undersigned hereby authorize said Bank, at any time and from time to time and in such manner and upon such terms, and for such time as it may see fit, to extend or change the time or manner for the payment of said sum or sums of money, or any part thereof, or alter the rate of interest thereon, or to release, sell, substitute, or exchange any security therefor, or to release or substitute endorsers or guarantors therefor, all without any notice to the undersigned or to any of them, and the undersigned hereby agree beforehand that no such change or extension of time or credit or rate of interest, or release, sale, substitution or exchange of security thereof, or release or substitution of endorsers or guarantors shall in any manner affect the liability of the undersigned thereon.