Weissman v. Naitove

Hagarty, J.:

The action is in equity between the immediate parties to two negotiable notes, payable February 9 and February 25, 1925, respectively. The plaintiff’s claim is that they are void because in the hands of innocent holders for value, because that which the statute has declared void cannot be made valid by passing through the channels of trade. (Sabine v. Paine, 223 N. Y. 401.) The single exception to this rule is made by section 114 of the Banking Law of this State (as amd. by Laws of 1922, chap. 623) and the Federal statutes applicable to National banks that a bank which purchases…