BILLS AND NOTES--CONDITIONS-NEGOTIABLE DESPITE REFERENCE TO TRUST AGREEMENT

Authors

Abstract

Bonds, stolen from the owner, were subsequently acquired by a bona fide purchaser who received payment from the obligor. The owner sued the obligor on the ground that the bonds were non-negotiable. The first paragraph in each bond contained an unconditional promise to pay. The second and third paragraphs contained the following clauses: "This bond is one of a series . . . executed and delivered in accordance with and subject to the provisions of the Trust Mortgage hereinafter referred to and in pursuance of resolutions of stockholders. . . . The payment of this bond and of the coupons attached to it, is secured by a Trust Mortgage of even date herewith, which is hereby referred to and all of its provisions made a part hereof . . . . " It was held that the bonds were negotiable. Gerrish v. Atlantic Ice and Coal Co., (C. C. A. 5th, 1935) So F. (2d) 648.

Recommended Citation

BILLS AND NOTES--CONDITIONS-NEGOTIABLE DESPITE REFERENCE TO TRUST AGREEMENT, 34 Mich. L. Rev. 880 (1936).
Available at: https://repository.law.umich.edu/mlr/vol34/iss6/12