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FIRST INT BANK v. BLANKSTEIN

59 N.Y.2d 436 (1983)

First International Bank of Israel, Ltd., Respondent, v. L. Blankstein & Son, Inc., et al., Appellants. First International Bank of Israel, Ltd., Respondent, v. Jacob Klein & Son, Inc., et al., Defendants, and Leo Siegman, Doing Business as Leo Siegman Diamonds, Appellant.

Court of Appeals of the State of New York.

Decided June 30, 1983.

Attorney(s) appearing for the Case

Robert J. Kaplan for appellants.

Steven J. Harvis and Frederic M. Umane for respondent.

Chief Judge COOKE and Judges JONES, WACHTLER, MEYER and SIMONS concur.

JASEN, J.

The critical issue presented on these appeals is whether the plaintiff bank is entitled to recover on two promissory notes as a holder in due course. We conclude that the bank was a holder in due course and in that capacity took the notes free of all personal defenses raised by the makers.

Beginning in 1976, plaintiff, an Israeli bank, lent money to defendant Leo Siegman, a leading Israeli diamond...

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