Citizens National Bank of Quitman v. Brazil

Been, Presiding Judge.

1. Among those defenses listed in Code § 109A-3 — 305 as available even against a holder in due course, subsection (2) (b) referring to "such . . . illegality of the transaction as renders the obligation of the party a nullity” refers to those defects which render the instrument void, not merely voidable. 2 Anderson Uniform Commercial Code 861, § 3-305:17. Examples of this type of illegality are a gambling debt, the contract being entirely void as against public policy, or a transaction regarding the sale of stolen property. See in the latter connection Middle Ga.…