Citizens & Southern National Bank v. Johnson

Almand, Justice.

In a suit by the Citizens & Southern National Bank, on notes executed by Willie Johnson, payable to the order of Morgan & Morgan Insurance Agency, which had been transferred to the bank before maturity, the defendants entered a plea and answer asserting that the notes sued on were (a) nonnegotiable, and (b), even if they were negotiable, the plaintiff was not a holder in due course, and at the time it took the notes had knowledge of such facts, and that its action in taking the notes amounted to bad faith (Code § 14-502 (4)), the Court of Appeals held that the trial court…