The First Department’s recent decision in U.S. Bank v. Askew1 held that, regardless of issues relating to an allonge, or the validity of an allonge, a plaintiff in a foreclosure action proves its prima facie case by demonstrating physical delivery of the note prior to commencement of the action.
The Askew decision is consistent with the age-old New York precedent that a negotiable instrument (such as a note) may be transferred without an allonge or indorsement. Thus, standing to foreclose a mortgage can be established when plaintiff is not the “holder” but is a transferee.
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