Bank of Commerce v. Wright
Supreme Court of Arkansas
Appeal from Pulaski Circuit Court. Joseph W. Martin, Judge. STATEMENT BY THE COURT. The Bank of Commerce held the note of Reinman & Simon for a considerable amount, and to secure its payment they transferred to the bank as collateral security two notes of W. H. Wright made to them for $1,250 each, before their maturity, in lieu of notes of J. F. Biscoe which the bank had held as collateral to the debt of Reinman & Simon, to it, but which they had obtained of the bank, before…
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Appeal from Pulaski Circuit Court. Joseph W. Martin, Judge. STATEMENT BY THE COURT. The Bank of Commerce held the note of Reinman & Simon for a considerable amount, and to secure its payment they transferred to the bank as collateral security two notes of W. H. Wright made to them for $1,250 each, before their maturity, in lieu of notes of J. F. Biscoe which the bank had held as collateral to the debt of Reinman & Simon, to it, but which they had obtained of the bank, before the time when the Wright notes were deposited with it, for the purpose of collecting the same and paying the proceeds…
1Opinion of the Court
Hughes, J.,
(after stating- the facts.) There was no error in the court’s refusal to give the first instruction asked for by the defendant. While the decisions are at variance upon the question whether a pre-existing indebtedness, without more, is a valuable consideration for the transfer of a negotiable promissory note made for accommodation only, before its maturity, without notice that it is accommodation paper by the transferee, so as to make the transferee a bona fide holder for value, our court has taken position on that question. In the case of Bertrand v. Barkman, 13 Ark. 159, the…
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