Texas Banking & Insurance v. Turnley

Citations

• 61 Tex. 365
• 1884 Tex. LEXIS 104

Syllabus

<p>1. Transfer of negotiable instruments.— However wrongful may be the act of a person by whom a negotiable instrument is passed to an innocent purchaser, such purchaser is protected, though the transfer to him may have been without legal authority. In such case one who takes under well recognized conditions, from one who has the apparent power to convey, is as fully protected in his right to the paper as if he held under the real owner.</p> <p>3. Same.— When the purchaser or holder of a negotiable instrument has obtained it in good faith, and for a valuable consideration, in the ordinary course of business before its maturity, and with no notice of its dishonor, or of any other fact that could affect its validity as between antecedent parties, the fact that it had no validity as to such antecedent parties will not affect his right to recover on it; he may then recover against its maker, though it was obtained by him from whom the holder thus purchased it, without consideration, or by fraud, theft, or robbery.</p> <p>3. Same.— The possession of a negotiable instrument payable to bearer indorsed in blank, or specially indorsed to the holder, carries title with it to the holder; and one who takes such securities under like circumstances, as a collateral security for present or future advances, is entitled to the same protection. Citing Murray v. Lardner, 2 Wall., 110; Goodman v. Simonds, 30 How., 365, and other cases.</p> <p>4. Collateral security — Negotiable instruments.— Title to a coupon railway bond of the state of Georgia, which really belonged to the wife, passed whim delivered by the husband as collateral security for a debt due by him and future advances, when the delivery was bona fide, in the ordinary-course of business, and with no notice of the wife’s interest.</p> <p>5. Same. — If, however, the bond was transferred and delivered as a collateral security for future advances, and no advances were made until after the maturity of the bond, then the title of