WEAST v. ARNOLD

No. 62, September Term, 1983.

299 Md. 540 (1984)

474 A.2d 904

RUTH W. WEAST v. FRANCIS A. ARNOLD ET UX.

Court of Appeals of Maryland.

Motion for Reconsideration Denied June 8, 1984.


Attorney(s) appearing for the Case

Arthur G. House, Bethesda, for appellant.

Malcolm B. Kane, Ellicott City (Lloyd, Kane & Wieder, Ellicott City, on the brief), for appellees.

Argued before MURPHY, C.J., and SMITH, ELDRIDGE, COLE, DAVIDSON, RODOWSKY and COUCH, JJ.


RODOWSKY, Judge.

This is a suit against the makers of promissory notes which the payee pledged as collateral for a loan. The delinquent balance on that loan has been paid by the pledgor's surety who thereby acquired the notes and who now sues on them. Contrary to the trial court's conclusion we shall hold that the plaintiff enjoys holder in due course status, as transferee of the lender's rights in the notes, but only to the extent of the lender's security interest...

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