Limerick National Bank v. Howard

Assuming that the notes were obtained by Reynolds, the payee, through fraud practiced upon the defendants, the court at the trial, in effect, ruled that there was no competent evidence that the plaintiff had knowledge of the fraud at the time it took the notes, or that it was not a bona fide holder. This result was reached presumably by applying the doctrine of this state: that mere suspicion of facts, which would be a defence to a note in the hands of the payee, is not notice of, and does not put the indorsee upon inquiry as to, such facts. Green v. Bickford, 60 N. H. 159. On the other hand,…