Bank of Monette v. Hale
Supreme Court of Arkansas
Appeal from Craighead Circuit Court, Lake City District; W. J. Driver, Judge; STATEMENT BY THE COURT. Appellant sued appellee for $375 upon a negotiable promissory note executed by him on April 1, 1909, payable to his order one year after date, with interest, which was indorsed. and on the next day transferred and delivered to appellant for a valuable consideration.
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Appeal from Craighead Circuit Court, Lake City District; W. J. Driver, Judge; STATEMENT BY THE COURT. Appellant sued appellee for $375 upon a negotiable promissory note executed by him on April 1, 1909, payable to his order one year after date, with interest, which was indorsed. and on the next day transferred and delivered to appellant for a valuable consideration. Appellee admitted the execution and indorsement of the note; denied that it was transferred to appellant for a valuable consideration, or at all, and that it became the owner thereof, and alleged that the president of appellant…
1Opinion of the Court
Kirby, J.,
(after stating the facts). It is contended that the bank is an innocent holder of the paper without regard to the circumstances under which it was executed, and therefore entitled to recover.
“A bona fide holder takes negotiable paper free from all equitable defenses, that is, all those defenses- that do not appear on the face of the paper and by which the paper is not declared invalid by statute. But, before one can become a bona fide holder of a negotiable instrument, he must take it (1) bona fide, (2) for a valuable consideration, (3) in the usual course of business, (4) before…
2Cases cited4 opinions
- Jarratt v. LangstonSupreme Court of Arkansas · 1911
- Brown v. LeMaySupreme Court of Arkansas · 1911
- Lanier v. Union Mortgage, Banking & Trust Co.Supreme Court of Arkansas · 1897
- Southern Sand & Material Co. v. People's Savings Bank & Trust Co.Supreme Court of Arkansas · 1911
3Cited by12 opinions
- Conqueror Trust Co. v. SimmonSupreme Court of Oklahoma · 1917
- Harbison v. HammonsSupreme Court of Arkansas · 1914
- McCollum v. GraberSupreme Court of Arkansas · 1944
- Conqueror Trust Co. v. Reves Drug Co.Supreme Court of Arkansas · 1915
- Stewart v. FlemingSupreme Court of Arkansas · 1912
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