Iowa Nat. Bank v. Sherman

Citations

• 17 S.D. 396
• 97 N.W. 12
• 1903 S.D. LEXIS 66

Syllabus

<p>1. The president of a corporation for manufacturing and selling machinery, which, in the usual course of business, receives promissory notes, is presumed to be authorized to transfer its notes,</p> <p>2. Authority of a bank teller to accept and discount a note for a particular person is shown by the fact that the teller was accustomed to accept and discount notes for persons doing business with the bank, and had often, in the absence of the cashier, accepted and discounted other notes for such person, and that these transactions had been recognized and approved by the officers of the bank.</p> <p>3. That the president of a bank is a stockholder, and the cashier a stockholder and secretary, of a corporation which is the payee of a note transferred to the bank, does not charge the bank with constructive notice of defenses of the maker against the corporation payee, when neither the president nor cashier had actual notice.</p> <p>4. The application of the proceeds of a negotiable note to the credit of the transferror on an existing debt is a sufficient consideration to constitute the transferree a bona fide holder, and protect him against defenses of which he had no notice.</p>