Bailey v. Seymour

Citations

• 42 S.C. 322
• 20 S.E. 62
• 1894 S.C. LEXIS 37

Syllabus

<p>1. Married Woman — Mortgage.—A mortgage executed by a married woman in 1892, charging her separate estate with the payment of the debt, and declaring that the debt was for the benefit of her separate estate, is governed by the act of 1891 (20 Stat., 1121), which deprives her of the power to make a valid promise to pay the debt of another.</p> <p>2. Ibid. — Ibid.—Nesotiable Paper — Purchaser.—But the note secured by the mortgage having declared that it was for value received, and note and mortgage having been transferred by the payee in payment of a pre-existing debt to his creditor “without recourse” before maturity, such creditor, having no notice contrary to the declarations contained in the note and mortgage, took both as negotiable commercial paper, free from the defence which the maker could have interposed to an action against her by the payee — that the debt secured was the debt of the payee and not her own.</p> <p>3. Ibid. — -Ibid.—Estoppel.—Where a married woman executes a promissory note, and secures it by mortgage, which is thereby made also negotiable, and declares on the face of the papers -that the debt is her own, she is estopped to aver the contrary against an innocent purchaser for value before maturity, unless she can show that such purchaser knew that the debt was not her own, and, therefore, was not misled by her representations.</p>