Pollock v. Simmons Bros.

Citations

• 76 Miss. 198

Syllabus

<p>1. Fraudulent Sale. Purchase in part' on credit. Promissory note. Assignment. Anti-commercial statute. Code 1882, \\ 3503.</p> <p>Notwithstanding onr anti-commercial statute (code 1892, § 3503), a buyer of property from one who fraudulently purchased it may be a bona fide purchaser, although he may not have fully paid the purchase price which he promised therefor. He is such a purchaser where, before the notice of his vendor’s fraud, he gave his promissory note for the ci'edit part of the purchase price, and the note was transferred by the payee to the latter’s bona fide creditor, and the maker of ithe note took it up and substituted for i t his new note payable to such creditor, he and the creditor acting in good faith.</p> <p>2. Same. Bona fide subsequent purchaser. Actual payment.</p> <p>In such case the defrauded party cannot hold the maker of the notes liable as a trustee mala fide on the ground that he is not a bona fide purchaser to the extent to which he has not paid for the property.</p>