Notes 215 



ment," and many rules apply to it which apply 

 to no other class of instruments. From this point 

 on we will consider this class of commercial 

 paper only, unless special reference is made to 

 non-negotiable paper. 



A note complete and regular on its face is 

 not subject to the equities if transferred to an 

 innocent third party before maturity for value, 

 he having no notice of defects in the course of 

 the instrument, provided, however, that, if it is 

 payable on demand, it must have been presented 

 for payment, within a reasonable length of 

 time. This practically means that such a person 

 holding such an instrument has a claim against 

 which there are almost no defenses. It is also 

 true that when there has been one person hold- 

 ing the note under the circumstances above de- 

 scribed, then all persons who take it afterwards 

 have all the rights against the maker and en- 

 dorsers that he had unless those who take it 

 afterwards have been guilty of fraud in procur- 

 ing the making of the note, or in procuring its 

 endorsement by those whom they seek to hold 

 liable. 



However, if it is shown that the note was 

 transferred for the first time after maturity, 

 the law presumes that the fact that it is due 

 and has not been paid is notice to the pur- 

 chaser that something may be wrong with the 



