Tennessee Valley Bank v. Williams

GARDNER, Chief Justice.

The suit is on a negotiable promissory note by an indorsee against the maker. The meritorious question in the case is whether the plaintiff is a holder in due course. Undisputedly the note was signed by the defendant, negotiated and indorsed by the payee before maturity upon payment of the full face value with interest to date of indorsement. The defense is rested upon the theory of misrepresentations made to him by the president of the payee bank, and defendant’s proof suffices to establish such fraud as to constitute a defense as between the payee and the maker. But…