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Usury In The Purchase Of Negotiable Paper, James H. Barnett Jr.

University of Richmond Law Review

This monograph attempts to explore the nature of certain transactions in negotiable paper. In the transactions under consideration the plaintiff admittedly would qualify as a holder in due course under section 62 of the Negotiable Instruments Law, hereafter referred to as the NIL. In Lynchburg National Bank v. Scott, 91 Va. 652 (1895), it was held that the maker's defense of usury between himself and the payee was not good against a subsequent holder in due course. The validity of that holding is not questioned here. It is important to distinguish the defense asserted in the unusual situations discussed herein …