216 The Farmer's Business Handbook 



note, otherwise it would have been paid. In 

 other words, no person who purchases a past- 

 due note from the payee himself is protected 

 against original want of consideration, against 

 fraud in its making or sometimes against any 

 counter-claim that may be made by the maker 

 of the note. If, however, a third party inno- 

 cently and without knowledge of any of the 

 equities or lack of consideration, fraud, etc., 

 purchases a negotiable note before it is due, then 

 the law protects the purchaser. For instance, 

 if A, a lightning-rod man, sells to B and 

 takes his note, and afterwards C purchases the 

 note for value before maturity without knowledge 

 of fraud on B by A, C is protected and can 

 collect the note even though fraud and mis- 

 representation were practiced by A on B. 

 This must lead to the conclusion that it is un- 

 safe to give a note unless the maker is entirely 

 satisfied that all of the conditions leading up to 

 the making have been fully complied with, be- 

 cause it is quite sure to turn up later in the 

 hands of an innocent third party. 



The date of a note is of great importance. 

 It is not counted in the time of a note, thus: 

 A note given July 1 for thirty days is due July 

 31. In some states three days of grace are 

 given in addition, but in New York, as in some 

 other states, days of grace have been abolished. 



