Sanders v. McAlister Bros. & Co.

Citations

• 101 Miss. 227
• 57 So. 801

Syllabus

<p>1. Bels and Notes. Assignee of bona fide purchaser. Bights.</p> <p>Where a party executed his note to a savings bank for the purchase of a certificate of deposit, for an equal amount, drawing a higher rate of interest, and the note was deposited by the savings bank with another bank as security for a debt and the latter bank took it before maturity and without notice of any defense thereto; and after the note matured .and the savings bank failed, the other bank attempted to collect the note and there was no notice of a set off made until the other bank sold the note at public auction to plaintiff after maturity, at which sale the maker of the note gave notice of his alleged right to set off his certificate of deposit. Held, that plaintiff having acquired the note from the bank which was a holder in good faith, was himself a bona fide holder for value, and that the certificate of deposit was, therefore, not available as a set off as against plaintiff’s rights.</p> <p>2. Same.</p> <p>If a person give his note for stock in a corporation and the corporation proves a failure, the validity of the note is not affected thereby.</p>