Purchasing the Notes - Whether the Purchase of a Promissory Note from the Note Holder by a Third-Party Discharges the Note

In Anderton v. Cawley, the Dallas Court of Appeals addressed an infrequently applied rule of law concerning whether a third party’s payment of a promissory note to the holder discharges the note obligation. The court concluded this type of transaction is presumed to be a purchase rather than a payment and discharge of the note.   In stating the applicable rule, the court acknowledged recent authority is sparse but cited cases over 50 to 70 years old.  The decision is consistent with long-standing case law in Texas and other jurisdictions.

Read the case note in Related Content, below.  Read the full case HERE.