BILLS AND NOTES - HOLDERS IN DUE COURSE - NOTICE TO A CORPORATION

Authors

Abstract

The plaintiff, as assignee of certain negotiable bonds, brought replevin to recover the same from the defendant who had acquired them as collateral on certain loans made to the thieves. The plaintiff proved that blanket notices of the theft had been sent to a number of banks, including the defendant bank, before the bonds were accepted as collateral, thereby raising a presumption that the notice was received by the mailing clerk of the bank. The officers of the defendant trust company denied having seen the notice or having knowledge of it at the time of the acceptance. Held, since there was no reason to doubt the testimony of the officers, the defendant bank acquired the bonds in good faith and without notice and was, therefore, a holder in due course and the plaintiff could not recover the bonds. Merchants' Nat. Bank v. Detroit Trust Co., 258 Mich. 526, 242 N. W. 739 (1932).

Recommended Citation

BILLS AND NOTES - HOLDERS IN DUE COURSE - NOTICE TO A CORPORATION, 31 Mich. L. Rev. 424 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss3/12