Bird Finance Corp. v. Lamerson

I cannot agree with the conclusion reached by Mr. Justice BOYLES, because that portion of the note in suit that represents usury is void for want of consideration. The note, therefore, at the time of its delivery to the original payee, was not free from infirmities.

The statute (2 Comp. Laws 1929, § 9301 [Stat. Ann. § 19.94]) provides in part,

"A holder in due course is a holder who has taken the instrument under the following conditions: * * *

"Fourth, That at the time it was negotiated to him he had no notice of any infirmity in the instrument or defect in the title of the person negotiating…