Newman & Snell's State Bank v. Hunter

Mr. Hunter died owing a debt to Newman & Snell's State Bank (plaintiff), evidenced by a note secured by stock in his own company, which was insolvent. His estate lacked sufficient assets to pay the debt, his widow's allowance, or even funeral expenses. His widow, Hunter (defendant), gave the Bank a new note promising to personally pay her late husband's debt, in exchange for which the Bank surrendered the original (already worthless) note. When Hunter later refused to pay, the Bank sued to collect on her note.