Matson v. Alley

Citations

• 141 Ill. 284
• 31 N.E. 419

Syllabus

<p>1. Private corporation—promissory notes, how executed. Promissory notes of a private corporation may be executed by its president and secretary, when it is done in good faith, to secure indebtedness of the corporation lawfully incurred in the course of its business.</p> <p>2. Assignment—assignee before maturity—how far protected against defenses of maker. The indorsee or assignee of commercial paper who takes before maturity for a valuable consideration, without knowledge of any defense, and in good faith, will be protected against the defenses of the maker. Suspicion of defect of title, or the knowledge of circumstances calculated to excite suspicion in the mind of a prudent man, or gross negligence on the part of the assignee at the time of the transfer, will not defeat his title. That result can only be produced by bad faith on his part. The burden of proof is on the person assailing his rights.</p> <p>3. Same—assignee after maturity from innocent assignee before maturity. Where a promissory note is assigned, before maturity, to an innocent holder, and he assigns the same after its maturity, the second assignee, will take the place of the first assignee, and succeed to all his rights to enforce collection, and no defense can be urged against the note in his hands not admissible against the first assignee.</p>