103 Ga. App. 258 | Ga. Ct. App. | 1961
1. Under the Uniform Negotiable Instru-
ments Act, “A holder in due course holds the instrument free from any defect of title to- prior parties, and free from defenses available to prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties liable thereon.” Code § 14-507. A holder in due course is one who, in good faith and for value, has taken an instrument that is complete and regular upon its face before it was due, and without notice of any previous dishonor, and who, at the time he took it, had no notice of any infirmity in the instrument or defect in the title of the person negotiating it. Code § 14-502. Actual knowledge of infirmity or defect or knowledge of facts such as to render his taking of the instrument an act of bad faith is necessary in order to constitute notice of infirmity under the foregoing law. Code § 14-506. Under these rales, the mere fact that a trade acceptance, which was otherwise shown to be complete and regular upon its face, had printed thereon the words: “Trade Acceptance” and “The transaction which gives rise to this instrument is the purchase of goods by the acceptor from the drawer,” was not sufficient to constitute such notice of infirmity in the instrument as to alter the status of the plaintiff as a bona fide holder in due course. Ennis v. Coshocton Nat. Bank, 27 Ga. App. 479 (3) (108 S. E. 811).
2. Where one sued upon a negotiable instrument, which is complete and regular upon its face, files an answer under oath denying that the transfer and indorsement to the
3. Under the rulings announced in the foregoing headnotes, where the evidence showed that the defendant had accepted the instruments sued upon and that the same were in the hands of the plaintiff, a holder in due course, the defendant did not have available to him the defense of failure of
4. Inasmuch as the ruling above made disposes of the case, it is unnecessary to rule on the other assignments of error relating to the rulings on the demurrers to the answer and on the motion for a new trial.
Judgment reversed.