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Bills And Notes-Right Of Maker Of Promissory Note To Set-Off In An Action By A Post-Maturity Transferee, Harold S. Lentz S.Ed.

Michigan Law Review

In an action upon a promissory note by a holder who was a transferee after maturity, the maker sought to set-off collateral claims which he held against the holder's transferor. Section 58 of the Negotiable Instruments Law provides: ''In the hands of any holder other than a holder in due course a negotiable instrument is subject to the same defenses as if it were non-negotiable." Another statute of the jurisdiction allowed set-off of collateral claims against third persons in actions on negotiable instruments. The lower court refused to allow the set-off. On appeal, held, reversed. Section 58 of the …