Robinson v. Smith

Citations

• 14 Cal. 94
• 1859 Cal. LEXIS 246

Syllabus

<p>Commercial paper, transferred before maturity, as collateral security for a preexisting debt, is not subject to the defenses of payor against payee.</p> <p>Payne v. Pensley, (8 Cal. 260,) affirmed.</p> <p>Because a mortgage, given to secure the payment of several notes falling due at different times, provides for payment at times, or in modes, different from the notes, is no objection to suit on the notes at maturity. The mortgage is not a part of the contract of indebtedness.</p> <p>Where, in a mortgage to secure the purchase money of land, for which notes were given falling due at different times, the condition was, “provided, that previous to the dates of said payments, it shall have been decided by competent authority, that the title to said land is fully vested in the party of the second part, and the party of the first part is given full and peaceable possession,” the holder of one of the notes transferred before maturity, may sue on it at maturity, although the title to the land has not been settled, and peaceable possession not given.</p> <p>The fact that the purchaser of the note saw the mortgage and note, was no notice to him of any valid defense to the note.</p>