Bank of Paris v. Pearson
Supreme Court of Arkansas
Appeal from Scott Chancery Court. Edgar E. Bryant, Judge. STATEMENT BY THE COURT. The Bank of Paris was the holder of two negotiable promissory notes made by Walter Pearson and S. J. Pearson to Evans and Hiner or bearer. Evans discounted these notes at the bank before the maturity thereof, receiving value for same, and, after indorsing same, he delivered same to the bank. The notes- were secured by a mortgage on certain lands.
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Appeal from Scott Chancery Court. Edgar E. Bryant, Judge. STATEMENT BY THE COURT. The Bank of Paris was the holder of two negotiable promissory notes made by Walter Pearson and S. J. Pearson to Evans and Hiner or bearer. Evans discounted these notes at the bank before the maturity thereof, receiving value for same, and, after indorsing same, he delivered same to the bank. The notes- were secured by a mortgage on certain lands. The bank, after the maturity of the notes and demand for payment, brought suit in equity against the makers, and asked for judgment for the debt and for foreclosure of…
1Opinion of the Court
Wood, J.,
(after stating the facts.) It is settled by the rules of the law merchant, which obtain in this state, that when a bill or note is, by its terms, made payable to bearer, or to a designated person or bearer, it may be negotiated so as to pass the legal title by delivery without indorsement. Buckner v. Bank, 5 Ark. 536; Edison v. Frazier, 5 Ark 219. See, also, Evans v. Speer Hardware Co., 65 Ark. 204; 4 Am. & Eng. Enc. Law, p. 250 (2 Ed.), and authorities cited.
Possession of the notes by Hiner was prima facie evidence of ownership in him, and, without notice to the contrary, appellant…
2Cases cited3 opinions
- Evans v. Speer Hardware Co.Supreme Court of Arkansas · 1898
- Buckner v. Real Estate BankSupreme Court of Arkansas · 1844
- Winship & Bros. v. Merchants National BankSupreme Court of Arkansas · 1883