If A holds a negotiable instrument under circumstances which make him a bona fide holder, and he transfers it regularly to B, who takes with notice, B takes all the rights of A,1 unless B has held the instrument before A under circumstances which did not make him a bona fide holder,2 as where he was the original payee with notice of defects.3 Accordingly, a transfer after maturity passes the rights of the transferor.4 Hence, if the latter took the note before maturity under circumstances making him a bona fide holder, his transferee has all the rights of a bona fide holder,5 unless the transferee is a prior party to the instrument, who was not himself a bona fide holder,6 or takes as agent of the original payee.7 One who takes with notice as transferee from a bona fide holder, acquires all the rights of his transferor.8 One who takes without paying value, as transferee of a bona fide holder, acquires all the rights of his transferor.9

1 Wirt v. Stubblefield, 17 D. C. App. 283.

See also, Schlesinger v. Gilhooly, 189 N. Y. 1, 81 N. E. 619.

2 Alexander v. Hazelrigg, 123 Ky. 677, 97 S. W. 353; Sabine v. Paine, 223 N. Y. 401, 119 N. E. 849; Twentieth Street Bank v. Jacobs, 74 W. Va. 525, Ann. Cas. 1917D, 695, 82 S. E. 320; Eskridge v. Thomas, 79 W. Va. 322, L. R. A. 1918C, 769, 91 S. E. 7.

3 Perry Savings Bank v. Fitzgerald, 167 Ia. 446, 149 N. W. 497; Sabine v. Paine, 223 N. Y. 401, 119 N. E. 849; Eskridge v. Thomas, 79 W. Va. 322, L. R. A. 1918C, 769, 91 S. E. 7.

4 Alexander v. Hazelrigg, 123 Ky. 677, 97 S. W. 353; Twentieth Street Bank v. Jacobs, 74 W. Va. 525, Ann. Cas. 1917D, 695, 82 S. E. 320.

Contra, Wirt v. Stubblefield, 17 D C. App. 283.

5 Citizens' Bank v. Crittenden Record Press, 150 Ky. 634, 150 S. W. 814; Lawson v. First National Bank, - Ky. - , 102 S. W. 324.

1 United States. Gunnison County v. Rollins, 173 U. S. 255, 43 L. ed. 689; Pickens Township v. Post, 99 Fed. 659, 41 C. C. A. 1.

Arkansas. Miles v. Dodson, 102 Ark. 422, 50 L. R. A. (N.S.) 83, 144 S. W. 908.

Georgia. Burch v. Pope, 114 Ga. 334, 40 S. E. 227.

Iowa. Riegel v. Ormsby, 111 Ia. 10, 82 N. W. 432; German-American National Bank v. Kelley, 183 Ia. 269, 166 N. W. 1053.

Kansas. Underwood v. Fosha, 96 Kan. 240, 150 Pac. 571.

Missouri. Kelly v. Staed, 136 Mb. 430, 58 Am. St. Rep. 648, 37 S. W. 1110.

Nebraska. Knight v. Finney, 59 Neb. 274, 80 N. W. 912.

New York. Vosburgh v. Diefendorf, 119 N. Y. 357, 16 Am. St. Rep. 836, 23 N. E. 801.

Texas. Herman v. Gunter, 83 Tex. 66, 29 Am. St. Rep. 632, 18 S. W. 428.

Contra, Bank v. Pennsylvania & Kentucky Fire Brick Co., 175 Ky. 192, L. R. A.1918E, 165, 194 S. W. 110.

2 Hatch v. Johnson Loan & Trust Co., 79 Fed. 828; Adair v. Bank of Hickory Flat, 115 Miss. 29, 75 So. 758; Shade v. Barnes, 35 S. D. 142, 151 N. W. 42 [sub nomine, Shade v. Hayes, L. R. A. 1915D, 271].

3 Massachusetts. Sawyer v. Wis-well, 91 Mass. (9 All.) 39; Berenson v. Conant, 214 Mass. 127, 101 N. E. 60.

Mississippi. Adair v. Bank of Hickory Flat, 115 Miss. 29, 75 So. 758.

Missouri. St. Charles Savings Bank v. Edwards, 243 Mo. 553, 147 S. W. 978.

Ohio. Tod v. Wick, 36 O. S. 370.

Rhode Island. Hove v. Kalashian, 22 R. I. 101, 46 Atl. 271.

South Dakota. Shade v. Barnes, 35 S. D. 142, 151 N. W. 42 [sub nomine. Shade v. Hayes, L. R. A. 1915D, 271].

Wisconsin. Andrews v. Robertson, 111 Wis. 334, 87 Am. St. Rep. 870, 54 L. R. A. 673, 87 N. W. 190.

4 Miles v. Dodson, 102 Ark. 422, 50 L. R. A. (N.S.) 83, 144 S. W. 908; Dean v. Vice, - Mass. - , 124 N. E. 672.

5 England. Chalmers v. Lanion, 1 Campbell 383.

United States. National Bank v. Texas, 87 U. S. (20 Wall.) 72, 22 L. ed. 295.

Arkansas. Miles v. Dodson, 102 Ark. 422, 50 L. R. A. (N.S.) 83, 144 S. W. 908.

California. Bank of Sonoma County v. Gove, 63 Cal. 355, 49 Am. Rep. 92.

Indiana. Thomas v. Ruddell, 66 Ind. 326.

Massachusetts. Edgerly v. Lawson, 176 Mass. 551, 51 L. R. A. 432, 57 N. E. 1020.

Michigan. Carpenter v. Greenop, 74 Mich. 664, 16 Am. St. Rep. 662, 42 N. W. 276.

North Carolina. Lewis v. Long, 102 N. Car. 206, 11 Am. St. Rep. 725, 9 S. E. 637.

Washington. Moyses v. Bell, 62 Wash. 534, 114 Pac. 193.

So under R. S. Sec. 3173 of Ohio, prior to the Negotiable Instruments Act, Sherman v. Investment Co.. 19 Ohio C. C. 26, 10 Ohio C. D. 33. This rule is re-enacted in G. C, Sec. 8163, of Ohio.

6 Kost v. Bender, 25 Mich. 515.

7 Battersbee v. Calkins, 128 Mich. 569, 87 N. W. 760.

9 United States. Porter v. Pittsburg Bessemer Steel Co., 122 U. S. 267, 30 L. ed. 1210.

Iowa. Riegel v. Ormsby, 111 Ia. 10. 82 N. W. 432.

Kansas. Underwood v. Fosha, 96 Kan. 240, 150 Pac. 571.

Kentucky. Citizens' Trust & Guaranty Co. v. Hays, 167 Ky. 560, 180 S. W. 811.

Missouri. McMurray v. McMurray, 258 Mo. 405, 167 S. W. 513.

Ohio. Bassett v. Avery, 15 O. S.

Wisconsin. Prentiss v. Strand, 116 Wis. 647, 93 N. W. 816.

The rule that a transferee acquires all the rights of the transferor, applies to cases in which the transferor may invoke estoppel against the maker to prevent him from interposing a defense which could have been interposed but for such estoppel.10 The transferee may take the same advantage of such estoppel that the transferor could have taken, although the transferee did not know the facts which misled the transferor.11 If a bona fide holder of an instrument transfers it and subsequently reacquires such instrument with knowledge of defects therein, he can assert his original right as bona fide holder to hold free from such defenses,12 that a transferee acquires the rights of his transferor.

The rule has been re-enacted in the Negotiable Instruments Law, which provides: "In the hands of any holder other than a holder in due course, a negotiable instrument is subject to the same defenses as if it were non-negotiable. But a holder who derives his title through a holder in due course, and who is not himself a party to any fraud or illegality affecting the instrument, has all the rights of such former holder in respect of all parties prior to the latter." 13 Under this section, which is regarded as declaratory of the common law,14 one who is not a technical bona fide holder acquires all the rights of his transferor,15 if the transferee is not a party to any fraud or illegality affecting the instrument.

9 Armstrong v. American Exchange National Bank, 133 U. S. 433, 33 L. ed. 747; Fowler v. Strickland, 107 Mass. 552; Sheridan v. New York, 68 N. Y. 30.

10 Dispatch Printing Co. v. National Bank of Commerce, 109 Minn. 440, 50 L. R. A. (N.S.) 74, 124 N. W. 236.

11 Dispatch Printing Co. v. National Bank of Commerce, 109 Minn. 440, 50 L. R. A. (N.S.) 74, 124 N. W. 266

12Ratcliffe v. Costello, 117 Va. 563, 85 S. E. 469.

13 Section 5S of the Negotiable Instruments Law.

14Comstock v. Buckley, 141 Wis. 228, 135 Am. St. Rep. 34, 124 N. W. 414.

15 Underwood v. Fosha, 96 Kan. 240, 150 Pac. 571; Moyses v. Bell, 62 Wash. 534, 114 Pac. 193.

Contra, of one who takes after maturity, Bank v. Pennsylvania & Kentucky Fire Brick Co., 175 Ky. 192, L. R. A. 1918E, 165, 194 S. W.ll0 [citing, Austin v. First National Bank, 148 Ky. 587, 147 S. W. 35, and especially the opinion on rehearing in 150 Ky. 113, 150 S. W. 8, in which the transferee took from the original payee, on the theory that "a transferee from a prior transferee occupies no safer position than does a transferee from the original payee"].