Moore & Co. v. Burling

Citations

• 93 Wash. 217
• 160 P. 420
• 1916 Wash. LEXIS 1176

Syllabus

<p>Bills and Notes — Bona Fide Holders — Fraud—Notice—Evidence —Sufficiency. Although a large discount puts a purchaser on inquiry, that fact, with notice that mortgage notes were given in payment of mining stock, is not sufficient to show that the purchaser had notice of fraud in the procurement of the notes, where inquiry was made of the maker before purchase and the maker stated that the notes were all right, and it was shown that the investment was not well thought of.</p> <p>Same — Bona Fide Holders — Discount — Amount oe Recovery. Under Rem. 1915 Code, § 3448, providing that the holder in due course holds the instrument free from any defects and may enforce payment for the full amount against all parties, a dona fide purchaser at a large discount may recover from the maker the full face of mortgage notes.</p> <p>Same — Negotiability—Provisions in Mortgage As to Security. Mortgage notes are not rendered nonnegotiable by provisions in the mortgage respecting insurance, payment of taxes and attorney’s fees on foreclosure which would have rendered the notes nonnegotiable if incorporated in the notes, as the provisions relate merely to the preservation of the security.</p>