In order to constitute a person a bona fide holder for value, he must in addition to having acted in good faith, and having given a valuable consideration, have taken without notice of the existing defenses.

The notice may be either express or constructive. Constructive notice may arise either from the face of the bill or note, or from extrinsic circumstances. An indorsement, "For the account," of indorser, gives notice of the lack of right of the indorsee to use it for his own purposes,12 but an indorsement without recourse is not sufficient to put the holder on inquiry as to equities between original parties.13

The notice, whether express or constructive, need not particularize the defect; it is sufficient if it is enough to put an ordinary prudent man on his guard.14

The fact that interest on a bill or note is overdue is not of itself sufficient to constitute notice. A notice to an agent is a notice to his principal in this class of contracts as in others.15 The holder of a bill or note takes it unaffected by public records not referred to in the instrument.16