278 BILLS OF EXCHANGE AND PROMISSORY NOTES. [ART. 13

CHAPTER III—Consideration of Negotiable Instruments.

1904, art. 13, sec. 43. 1898, ch. 119.

43. Every negotiable instrument is deemed prima facie to have
been issued for a valuable consideration; and every person whose signa-
ture appears thereon to have become a party thereto for value.

In a suit by an endorsee on a promisory note where a plea alleges the
execution and delivery of the note to the payee, and sets up an agreement
between the maker and the payee that the note was not to be negotiated,
and that the endorsee took the note with a knowledge of this agreement, the
plea is defective in view of this section and section 45. Black v. Bank of
Westminster, 96 Md. 416.

Ibid. sec. 44. 1898, ch. 119.

44. Value is any consideration sufficient to support a simple con-
tract. An antecedent or pre-existing debt constitutes value; and it is
deemed such whether the instrument is payable on demand or at a future
time.

Ibid. sec. 45. 1898, ch. 119.

45. Where value has at any time been given for the instrument,
the holder is deemed a holder for value in respect to all parties who
became such prior to that time.

In a suit by an endorsee on a promisory note where a plea alleges the
execution and delivery of the note to the payee, and sets up an agreement
between the maker and the payee that the note was not to be negotiated
and that the endorsee took the note with a knowledge of this agreement,
the plea is defective in view of this section and section 43. Black v. Bank
of Westminster, 96 Md. 416.

Ibid. sec. 46. 1S98, ch. 119.

46. Where the holder has a lien on the instrument arising either
from contract or by implication of law, he is deemed a holder for value
to the extent, of his lien.

Ibid. sec. 47. 1898, ch. 119.

47. Absence or failure of consideration is matter of defense as
against any person not a holder in due course; and partial failure of
consideration is a defense pro tanto, whether the failure is an ascer-
tained and liquidated amount or otherwise.

This section applied. Burke v. Smith, 111 Md. 627.

Ibid. sec. 48. 1898, ch. 119.

48. An accommodation party is one who has signed the instrument
as maker, drawer, acceptor or indorser, without receiving value therefor,
and for the purpose of lending his name to some other person. Such a
person is liable on the instrument to a holder for value, notwithstanding
such holder at the time of taking the instrument knew him to be only
an accommodation party.

The last sentence of this section applied. Weant v. Southern Trust Co.,
112 Md. 471. Black v. Bank of Westminster, 96 Md. 417. See also, Schwartz
v. Wilmer, 90 Md. 141.