18 Wis. 615 | Wis. | 1864
By the Court,
We suppose the law to be perfectly well settled that where a person takes a negotiable promissory note before maturity in the usual course of business, even as collateral security, and makes advances at the time upon the credit of such note, he is considered by all the authorities as a bona fide holder for value, within the rule for the protection of commercial paper. The indorsement and delivery of the note, under such circumstances, transfer to the holder the title to the instrument, and give him an original and paramount right of
In this case it appears the court nonsuited the plaintiff on the ground that he had alleged in his complaint that he was the owner and holder of the note described in the complaint, while the evidence showed that he held said note only as collateral security for the amount due on the notes of the railroad company. It is not denied that money was paid and advanced on the strength and credit of this note, and to the amount for which the paper had been pledged the plaintiff’s right of recovery was clear. To that extent, at least, he was the owner of the instrument. It is claimed that the plaintiff could not
In the absence of any evidence to the contrary, the indorsement of the note is presumed to have been made at or about the date of the note. The plaintiff saw fit to state in the complaint the circumstances under which the various indorsements were made. We see nothing in this to prejudice his right to recover.
The judgment of the circuit court is reversed, and a new trial ordered.