New Jersey Title Guarantee & Trust Co. v. McGrath

This case was before this court in 239 Mich. 404, where a statement of facts may be found. Plaintiff took the original note from the payee, discounted it, and gave the payee thereof credit therefor. The credit of the payee with plaintiff was not exhausted before maturity of the first or original note. Plaintiff had not paid value therefor. It is contended that after maturity of the original note plaintiff could not become a bona fide holder for value of any of the renewal notes, particularly of the one sued upon.

Plaintiff is a bona fide holder for value of the last renewal note, unless the…