The payment of a negotiable instrument will always be a good defense between the immediate parties; before maturity, however, it will not be a defense against a purchaser for value who takes without notice of such payment. A payment of a note by an indorser will not extinguish the debt of the maker, unless the payment was made with this intention. The rules governing the rights of bona fide holders for value do not generally apply in the case of discharge by operation of law.

12 Vol. III, Sub. 6. 13 Vol. IV, Sub. 8.

14 Davis vs. McCready, 17 N. Y., 230.