Victor v. Vitols v. The Citizens Banking Company, Tucker Anthony Incorporated

DAVID A. NELSON, Circuit Judge.

This is a securities fraud case brought by investors in a now-defunct real estate partnership. The partnership accepted negotiable promissory notes from the plaintiffs in partial payment for limited partnership interests, and the notes were ultimately transferred to the defendant bank.

The bank sought and obtained a summary judgment declaring that it had become a holder of the notes for value, in good faith, without notice of any defenses, and was thus a holder in due course. As a holder in due course, the district court held, the bank took the notes free of…