Moyses v. Bell

Citations

• 62 Wash. 534
• 114 P. 193
• 1911 Wash. LEXIS 740

Syllabus

<p>Bills and Notes — Bona Fide Holders — Title From — Statutes. Under Rem. & Bal. Code, § 3449, providing that a holder of a note who derives title through a holder in due course, and is not a party to any fraud or illegality affecting the instrument, has all the rights of such former holder, a Tyona fide holder in due course can pass a good title after maturity, although there has since been a failure of consideration as between the original parties, to the knowledge of the last assignee.</p> <p>Same — Bona Pide Holders — Who Are — Consideration—Executory Contract. A bank taking as collateral security a note given in consideration of a perpetual water right, before maturity and before any failure of consideration by default on the water contract, is a holder in due course, as defined by Rem. & Bal. Code, § 3443.</p> <p>Same — Transfer—-“Defective.” Title — Statutes—Construction. The title to a note, given in payment of a perpetual water right, is not defective as defined by Rem. & Bal. Code, § 3446, where the maker’s signature was not obtained by fraud or unlawful means or an illegal consideration and it was negotiated before its consideration had failed.</p> <p>Same — Bona Pide Holders — Burden of Proof. Under Rem. & Bal. Code, § 3450, where the title to a note is not defective, the burden can never be upon the holder of a note to show that he is a holder in due course.</p> <p>Bills and Notes — Consideration—Failure. A note given in consideration of an agreement to convey and furnish water to land on or before a certain date is based upon a valuable consideration, and there can be no failure of consideration until breach of the contract.</p> <p>Same — Bona Pide Holder — Consideration — Failure—Notice. The transferee of a note is not deprived of his character as tona fide holder in due course by knowledge that it was given in consideration of an executory contract, where he had no notice of any breach of the contract at the time the same was transferred to him.</p>