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SEC. 887. LIABILITY OF SURETY ON DISCOUNTED NOTE. The surety who has become a party to a promissory note to raise money for the principal for a specified purpose, cannot complain if the note is discounted by another than the payee and the money applied to the purpose intended. (Bank v. Bingham, 33 Vt., 621.) And where a note was executed to buy a yoke of oxen of one person the surety to have a mortgage on them for security, and the principal bought the oxen of another person, who knew that the note was given to buy another pair of oxen, but did not know of the agreement as to the mortgage, both principal and surety were held liable on the note. (Laub v. Rudd, 37 Ia., 617.) But if the note signed by the surety for a particular purpose is diverted from that purpose, and the party taking it knew of the pur pose for which it was executed, the surety will not be bound. (Brown v. Tabor, 5 Wend., 566.) A party taking such note in good faith for value and without notice may hold the surety regardless of the fact of the note being diverted from the pur pose intended. (McWilliams v. Mason, 31 N. Y., 294.)

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