First National Bank of Commerce v. Merkel

Citations

• 97 Miss. 824
• 53 So. 350

Syllabus

<p>1. Promissory Notes. Bona fide purchaser. Defenses. Estoppel.</p> <p>Where defendant executed a premium note and delivered the same to an insurance agent, with a written statement that he had no “claim or offset” against the note, such statement constituted a representation to a dona fide purchaser of the note before maturity that it was a valid obligation, and warranted the purchaser in believing that the consideration had been received, and therefore estopped defendant from setting up as a defense against such purchaser that the policy delivered was not the policy applied for and that defendant declined to accept it.</p> <p>2. Same. Same. Material alteration.</p> <p>Where a note, blank as to the rate of interest, was filled by the holder after delivery so as to make the note bear eight per cent, interest from date, the alteration was material and constituted a valid defense, even as against a dona fide purchaser without notice.</p>