Brainerd v. Koffmeal

The note in suit was executed March 8, 1920, by the Home Auto Company, of Charter Oak, Iowa, a copartnership composed of J. H. Koffmeal el al., to P. H. Pilchard, wbo, on or about March 20th, transferred it to the Citizens National Bank of Wayne, Nebraska, of which appellant is president, as collateral security for a loan in favor of Pilchard. The defense set up to the note was fraud in its inception. Appellant, who brought the action'as trustee for the bank, by way of reply pleaded that the bank purchased the note in due course, for value, before maturity, and without notice of defects in…