Reliance Equipment Co. v. Sherman

The suit is on a negotiable promissory note by an indorsee against the maker. The question of merit in the case is whether the plaintiff is a holder in due -course. The note was, without dispute in the evidence, negotiated and indorsed by the payee before maturity for credit on an account due from the payee to the indorsee.

A pre-existing debt constitutes value .and supports an assignment of commercial paper as in due course. Code, § 9053; Walden v. Warren, 215 Ala. 94, 109 So. 749.

Plea No. 4 proceeds on the theory that the purchase of the note for credit on ac■count due from payee to indorsee…