Trustees of the Internal Improvement Fund v. Lewis

Citations

• 34 Fla. 424

Syllabus

<p>INTEREST COUPON, NEGOTIABILITY OF — POSSESSION OF NEGOTIABLE INSTRUMENT SHOULD BE OBTAINED BY PAYOR WHEN PAID BEFORE MATURITY.</p> <p>1. Coupons that are payable to bearer, and that are attached to and represent the semi-annual installments of interest accruing upon railroad bonds, are in legal effect promissory notes, and possess all the attributes of negotiable paper.</p> <p>2. Such coupons may be detached and negotiated separately by simple delivery, and sued on separately from the bond after the bond itself has been paid and salislied, as well as before. Coupons once detached and negotiated cease to be mere incidents of the bond, and become independent claims, and carry interest after their maturity.</p> <p>3. Where a negotiable instrument is paid before maturity, it is especially important that it should be surrendered to the payor, so that further negotiation may be prevented ; for in such case if payment is made to the original payee and the note is not surrendered, but has already, or should afterwards be transferred, before maturity, to a bona fide holder, without notice, such holder can recover thereon against the maker notwithstanding such payment to the original payee.</p>