Oppenheimer v. Radke & Co.

HALL, J.

This is an appeal from a judgment rendered against defendants as the makers of two promissory notes aggregating the principal sum of $2,206.87, for which amount and interest thereon judgment was rendered for plaintiff as the indorsee of said notes.

[519]

The two notes are in terms payable to Ciner and Seeleman who, before maturity thereof, indorsed them to the State Bank of New York, which passed the amount of the two notes, less the discount therefor, to the credit of Ciner and Seeleman. This transfer to the bank 'occurred in the spring of 1910, and the bank took the notes without notice of a defense that existed against the payees of said notes and in favor of defendants, the makers; and it is conceded by defendants that plaintiff was entitled to recover unless, as is contended by appellants, the finding made by the court that the State Bank was a purchaser for value, is not supported by the evidence.

The bank received no notice of the facts constituting the defense as between the payees and appellants until after the maturity of the notes.

That the mere passing of the amount of a note, by a bank discounting the same, to the credit of the payee thereof, is not a purchase for value, is established by the great weight of authority.

(Fox

v.

Bank of Kansas City,

30 Kan. 441, [1 Pac. 789];

Central Bank

v.

Valentine,

18 Hun, (N. Y.) 417;

Manufacturers’ Nat. Bank etc.

v.

Newell,

71 Wis. 309, [37 N. W. 420];

Thompson

v.

Sioux Falls Nat. Bank,