raud, then the holder
must show the consideration he gave for it.

Sec.8. Ordinarily, a person can not convey to another a valid title to
property which is not lawfully his own; and hence the purchaser of
stolen goods must give them up to the lawful owner. The exception to
this rule, in the case of promissory notes, seems to be founded in
reason and good policy. The use of negotiable paper in commercial
transactions is of great public convenience; and it is proper that, for
the sake of trade, protection should be given to the holder of such
paper who receives it fairly in the way of business, though it has been
paid, if he received it before it fell due.

Sec.9. But it is equally material for the interests of trade, that the
owner should have due protection. Hence if a person takes a note from a
stranger without inquiring how he came by it; or does not take it in the
usual course of business, or for some responsibility incurred on the
credit of the note, he takes it at his peril. But the owner, in order to
place his right to relief beyond question, ought to use diligence in
apprising the public of the loss of the note.

Sec.10. A person buying a note after it has become due, takes it at his
peril. Although the holder may sue it in his own name, the maker may
offset any demands which he had against the promisee before it was
transferred, as in the case of notes not negotiable. (Sec.2.) But when
notes in which no day of payment is expressed comes under this rule, is
a question to be determined by circumstances. In New Jersey and
Pennsylvania, the words "without defalcation or discount," or words to
that effect, must be inserted in notes, or they may be met by offsets as
notes that are bought after due.

Sec.11. A note made payable in some commodity is not negotiable. If it is
not paid according to the conditions therein expressed, the maker
becomes liable to pay in cash. But in either case, if it passes to a
third person, he can sue it only in the name of the promisee or payee;
and it may be met by offsets as other notes not negotiable, (Sec.2,) and
notes bought after due. (Sec.10.)

Sec.12. Notes payable _on demand_, or in which no time of payment is
mentioned, are due immediately, and no demand of payment is necessary.
But a note payable _at sight_, or at a specified time after sight, must
be presented for payment before it can be sued. If the words "with
interest" are omitted, interest commences at the time the no