The Grocers’ Bank of the City of New York, Respondent v. Thomas D. Penfield, Impleaded

Summary

The Court of Appeals affirmed the lower court's order, holding that a holder who receives an accommodation promissory note as collateral for an antecedent debt, without any new consideration, is a holder for value and may enforce the note. The maker's lack of consideration is not a defence. The decision rests on established authority that the antecedent debt itself suffices as consideration.