Northwestern Bank v. Neal

Ness, Justice:

The trial court held that a note endorsed to the appellant bank was not negotiable and that the bank, as a matter of law, was not a holder in due course. We reverse.

Respondent Neal purchased a boiler from Thomas Equipment & Supply Company on August 9, 1973. On that date, Neal executed two separate documents: a note in the sum of $8,714.72 and a conditional sales contract. On the same date, the note and conditional sales contract were discounted and assigned for valuable consideration by Thomas to the appellant bank. Thomas assigned its security interest in the boiler to the bank…