Pearce & Miller Engineering Co. v. Brouwer

The question presented on this appeal is whether the plaintiff was the Iona fide holder of the note in suit to the extent of the money actually advanced upon it, and for which it was held by him as collateral security.

The transfer of a negotiable promissory note before maturity as collateral security for moneys advanced constitutes the transferee a tona fide holder when the loan or advance was made in good faith. Brookman v. Metcalf, 32 N. Y. 596 ; Belmont Branch Bank v. Hoge, 35 id. 65. If the holder of such paper has paid but a part of the consideration or value, he is entitled to be…