McKenney

The plaintiff, as receiver of the Sutter Creek State Bank, brought this action upon a promissory note executed by defendant on June 20, 1907. The note was in the sum of seven thousand five hundred dollars, and was made payable one year after its date to the order of Jackson Dennis. The complaint alleges that before maturity the said note was, for value, indorsed and delivered by the payee to the Sutter Creek State Bank, which ever since has been the owner and holder thereof. The answer denies the indorsement by Dennis to the bank before .maturity or for value, or at all, ■denies the allegation of nonpayment, and alleges affirmatively the full payment of the note. It further sets up, as separate defenses and counterclaims, 1. The making by Jackson Dennis to defendant, prior to the alleged indorsement of the note sued upon or notice thereof to defendant, of a promissory note in the sum of five thousand dollars, payable one day after its date of July 27, 1907, the nonpayment of said note, together with the allegation that, at the time the note in suit was indorsed to the Sutter Creek State Bank, said bank had notice of the five thousand dollar note given by Dennis to Ellsworth, and…