First National Bank v. John McGrath & Sons Co.

Citations

• 111 Miss. 872
• 72 So. 701

Syllabus

<p>1. Bills and Notes. Conflict of laws. Holder in due course. Transfer as collateral security. Renewal of secured debt. Effect. Pleading.</p> <p>In a suit in this state on a promisory note made payable in Illinois, the anti-commercial statute of Mississippi cannot be invoked, but the law of Illinois, the place of payment, governs.</p> <p>2. Bills and Notes. Holder in due course. Transfer as collateral.</p> <p>It is the general law of the land where the negotiable instrument law is in effect that, where a note is assigned as collateral security for an indebtedness then made, the assignee becomes a holder, for value of same, and the negotiable paper is thereby freed of any defenses existing as between the maker and the payee.</p> <p>3. Same.</p> <p>The fact that the original note has been renewed several times does not in any way alter the position of the assignee with reference to being a bona fide holder or purchaser for value of the collateral note.</p> <p>4. Pleadings. Failure to demur. Directed verdict.</p> <p>In a suit on a note transferred as collateral security, where special matters were, pleaded as defenses which could not be maintained because the note was payable in Illinois, the plaintiff could either demur to the special pleas or ask a peremptory instruction and he lost nothing in such case by failing to demur.</p>