Merchants & Farmers Bank v. Bank of Winona

Citations

• 106 Miss. 471
• 64 So. 210

Syllabus

<p>1. Brass and Notes. Bona fide holder. Purchaser. Burden of proof. Actions. Admissibility of evidence. Pleading Proof.</p> <p>The holder of negotiable paper is presumed to be a bona fide holder for valuable consideration until something be shown in disparagement of his title; and he is not bound to show that he has given value for the paper, or that he took it before maturity, until the adverse party has shown the want, or failure, or illegality of the consideration, or that it was lost, or stolen from the rightful holder, or that the holder came to the possession of it fraudulently.</p> <p>2. Same.</p> <p>Proof of the fraud of the payee of a note, imposes upon him the ' duty of showing that he is a purchaser for value and in good faith.</p> <p>3. Bills and Notes. Bona fide purchaser. Burden of proof.</p> <p>The title to a note payable to bearer may be conveyed by a delivery of the note, and one in possession of such a paper is primo, facie the owner of same, and prima facie the holder is an innocent purchaser for value, but when circumstances in evidence show that the payee from whom the holder claims, came into possession of the note by fraud upon the maker, then the holder must show good faith.</p> <p>4. Bills and Notes. Bona fide purchaser.</p> <p>Receiving property merely as security for a pre-existing debt does not constitute the holder a purchaser for value and by reason of our noncommercial statute, the same rule applies to bills of exchange and notes taken as security for a debt.</p> <p>5. Pleading. Conclusions.</p> <p>In a suit by the assignee upon a promissory note where the plea to plaintiff’s declaration sets up the defense that the notes in question were assigned to plaintiff as a security.for a pre-exist-ing indebtedness, a replication by plaintiff merely saying that the note was purchased by it in the usual course of business, and that it was a bona fide purchase for value, should on mo-' tion be stricken out, since suck replication does not deny t