Saline Valley Bank v. Peckham

The opinion of the court was delivered by

Dawson, J.:

This was an action on a promissory note procured by fraud. After the discovery of the fraud, and before the note was negotiated by the swindler, the maker and the swindler made an agreement whereby the latter should retain the note and discount it upon condition that he would return it to the maker at its maturity without cost to him. The note "was then discounted to the plaintiff, which knew of the fraud *562and knew the terms of the agréement between" the maker and the swindler. The note not being paid at maturity, the holder sued the maker.…