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Rutherford purchased real property from Ethel Stokes for $35,000. He paid $5,000 down and signed a promissory note for the balance. The note was secured by a deed of trust.
When payments on the note were overdue, Stokes co n- sidered foreclosing on the property.
Prior to doing so, however, she negotiated the note to Craig, who pu r chased it at a discount with notice that it was in default. Was Craig a holder in due course of the note? Why or why not?
Matter of Marriage of Rutherford, 573 S.W.2d 299 (TX).
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