155 Ga. 69 | Ga. | 1923
1. The sole question is whether Bank of Oglethorpe, the purchaser of the note after it was due, from the Bank of Mitchell County, acquired title good as against the Bank of Hillsboro. If the verdict here complained of was properly directed, it necessarily follows that the Bank of Oglethorpe has no further interest in the adjudications of the ease, as between the other parties. There is no dispute as to the facts. The note, when first received by the Bank of Hillsboro, was indorsed in blank. The Bank of Hillsboro returned it to Mitchell County Bank for collection, under a trust agreement evidenced by a separate writing. The Bank of Hillsboro, in returning the note for collection, made no entry of any kind or character on the note itself. The name of
The Bank of Oglethorpe invoke^ the application of the principles stated in the Civil Code, § 4537, which declares: “When one of two innocent persons must suffer by the act of a third person, he who put it in the power of the third person to inflict the injury must bear the loss.” Counsel insists that Bank of Hillsboro and Bank of Oglethorpe both being innocent parties in the transaction, the former must suffer the loss, because of the unauthorized act of Mitchell County Bank, Bank of Hillsboro having put it in the power of Mitchell County Bank to inflict the injury. Conceding that Bank of Hillsboro did put it in the power of Mitchell County Bank to inflict the injury, still, in order for Bank of Oglethorpe to avail itself of the principles stated in § 4537, Bank of Oglethorpe must be an innocent purchaser as to the transaction. Was it an innocent purchaser in contemplation of law? We think not. The note was indorsed in blank, and therefore payable to bearer, and was negotiable. Civil Code (1910), § 4273. It is well settled that the maturity of the note does not affect its negotiability; it is negotiable after maturity, as well as before. By statute, however, the bona fide holder for
Judgment affirmed.