BILLS AND NOTES -- NON-NEGOTIABLE BECAUSE OF REFERENCE TO TRUST AGREEMENT

Authors

Abstract

Whether certain purchasers of notes occupied a better position than the ones from whom they purchased depended upon whether the notes in question were negotiable. Each note contained the following clause: "This note is one of a duly authorized issue of notes . . . issued under and all legally entitled to the benefit of a trust indenture. . . . For a description of the rights of the holders of the notes and the terms and conditions upon which the notes are issued, reference is made to said Trust Indenture with like effect as though said Trust Indenture were recited in full herein.'' It was held that the quoted language rendered the notes non-negotiable. Detroit Trust Co. v. Detroit City Service Co., (Mich. 1933) 247 N. W. 76.

Recommended Citation

BILLS AND NOTES -- NON-NEGOTIABLE BECAUSE OF REFERENCE TO TRUST AGREEMENT, 31 Mich. L. Rev. 984 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss7/13