National Bank of Commerce v. Morris
Missouri Court of Appeals
Appeal from Audrain Circuit Court.—Eon. James D. Barnett, Judge. (1) The evidence shows'that the note was delivered to the appellant either, on account of a new loan or by way of substitution for other collateral which was surrendered in the same transaction; and it is well settled that a transferee who takes collateral by way of substitution for other collateral surrendered becomes a holder for valuable consideration.
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Appeal from Audrain Circuit Court.—Eon. James D. Barnett, Judge. (1) The evidence shows'that the note was delivered to the appellant either, on account of a new loan or by way of substitution for other collateral which was surrendered in the same transaction; and it is well settled that a transferee who takes collateral by way of substitution for other collateral surrendered becomes a holder for valuable consideration. Voss v. Chamberlain, 117 N. W. 871; Jones on Pledges and Collateral Security, sec. 470; Bank v. Watson, 42 N. Y. 490; Greenwell v. Haydon, 78 Ky. 382; Cherry v. Frost, 7 Lea 1;…
1Opinion of the CourtNortoni, J.
This is a suit on a promissory note. The finding and judgment were for defendant and plaintiff prosecutes the appeal.
The question for decision arises under , our Negotiable Instrument Law, adopted in 1905, and relates alone to the sufficiency of an existing antecedent indebtedness as consideration for the transfer of a negotiable promisory note before maturity, merely as collateral security, to render such note, in the hands of the holder thereof, immune against equities which subsist between the original parties thereto.
Defendant Morris, on May 3, 1906, executed and delivered to one E. A. P.…
2Cases cited11 opinions
- Johnson v. GraysonSupreme Court of Missouri · 1910
- Fitzgerald v. BarkerSupreme Court of Missouri · 1888
- Loewen v. ForseeSupreme Court of Missouri · 1897
- Voss v. ChamberlainSupreme Court of Iowa · 1908
- Campbell v. Fourth Nat. BankCourt of Appeals of Kentucky · 1910
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3Cited by4 opinions
- Sikes v. ChaneyMissouri Court of Appeals · 1927
- State Bank v. Cape Girardeau & Chester RailroadMissouri Court of Appeals · 1913
- Farmers State Bank v. MillerMissouri Court of Appeals · 1927
- Commerce Trust Co. v. McGirk State BankMissouri Court of Appeals · 1927