BILLS OF EXCHANGE AND PROMISSORY NOTES 473

CHAPTER HI.—Consideration of Negotiable Instruments.

An. Code, 1924, sec. 43. 1912, sec. 43. 1904, 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 signature ap-
pears thereon to have become a party thereto for value.

In a suit by an endorsee on a promissory 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 sec-
tion and sec. 45. Black v. Bank of Westminster, 96 Md. 416.

Where there is no testimony to meet the effect of this section or evidence that a
note was taken by the plaintiff under the belief that it had been issued by the cor-
poration whose name was signed to it for money due by it, the indebtedness of such
corporation was treated as established, although the answer alleged that the note
was the personal debt of an individual who signed the corporation's name without
its authority. Bear Creek Lumber Co. v. Bank, 120 Md. 568.

Under the negotiable instruments act the burden of proof is on one who alleges
that a note is invalid for want of consideration. Dever v. Silver, 135 Md. 363.

This section referred to in construing secs. 14 and 138—see notes thereto. Jamesson
v. Citizens Bank, 130 Md. 84.

See notes to sec. 47.

An. Code, 1924, sec. 44. 1912, sec. 44. 1904, sec. 44. 1898, ch. 119.

44. Value is any consideration sufficient to support a simple contract.
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.

Credit is valuable consideration under this section. See notes to sec. 49. Blacher v.
Natl. Bank of Balto., 151 Md. 521.

See notes to sec. 47.

An. Code, 1924, sec. 45. 1912, sec. 45. 1904, 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 promissory 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 sec. 43. Black v. Bank of Westminster, 96 Md. 416.

This section referred to in construing secs. 14 and 138—see notes thereto. Jamesson v.
Citizens Bank, 130 Md. 84.

An. Code, 1924, sec. 46. 1912, sec. 46. 1904, sec. 46. 1898, 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.

An. Code, 1924, sec. 47. 1912, sec. 47. 1904, 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 ascertained and liquidated
amount or otherwise.

In view of this section and sec. 77, a total or partial failure of consideration is a
defense to a note as between the maker and payee and against any person not a
holder in due course. Hence the parties may show all the facts and circumstances
surrounding the execution of the note and relating to the existence of a consideration.
Herman v. Combs, 119 Md. 43.

Parol evidence admissible to show a failure of the consideration for which defen-
dant endorsed a note. When parol evidence is admissible re. The execution or endorse-
ment of commercial paper. Leonard v. Union Trust Co., 140 Md. 198.