Associates Financial Corp. v. Carrick

I respectfully dissent.

The trial court found that plaintiff, Associates, was a holder in due course of the promissory note, which was secured by the chattel mortgage, and that plaintiff’s status therefore “cut off” the defense of improper use of executory process. It is of course true that a holder in due course may cut off a maker’s substantive defenses to the payment of a note. See LSA — R.S. 10:3-305. However, the idea that a plaintiff seeking to enjoin the use of executory process by a holder in due course may not “go behind” the face of the instrument in an effort to prove that the…