....and sub-section 2 of this section says that the title of a person who negotiates a bill is defective when he negotiates it in breach of faith or under such circumstances as amount to a fraud. The authorities are conflicting on this question. Daniel on Negotiable! Instruments, Sixth Edition,...

...in Due Course.—One who derives his title to an instrument through a holder in due course thereof, and who is not himself a party to any fraud or illegality affecting the instrument, has all the rights of his transferor as to parties prior to such transferee. 270. Persons...

...instrument, or any signature thereto, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates...or under such circumstances as amount to a fraud. Sec. 57. Rights of Holder in Due Course.—A holder in due course holds the instrument free from any...

...instrument, or any signature thereto, by fraud, duress, or force or fear, or other unlawful means, or for an Illegal consideration, or when he negotiates...faith, or under such circumstances as amount to a fraud and the title of such person is absolutely void when buch instrument or signature was so procured from...

...bill, or the acceptance title ' thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates...faith, or under such circumstances as amount to a fraud (g). This list of defects in title may not be exhaustive. A person whose title is defective must be...

...bearer, and may be negotiated by delivery." (Civ. Code, sec. 3115.) "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."...

...instrument is subject to the same defenses as if it were nonnegotiable ; 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."...

...give a better title than that which had the person from whom he took it. And section 57 reads: 57. A holder, whether for value or not, who derives his...party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to...

...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."...

...thereto by fraud, duress, force, or other unlawful means or for an illegal consideration, but also "when he negotiates it in breach of faith or under such circumstances as amount to a fraud." Since the title of the payee, who negotiated the note, was defective, it was held that under Section...