negotiable until it has been restrictively indorsed or discharged by

payment or otherwise.

Sec. 48. The holder may at any time strike out any indorse-tung Out ment which is not necessary to his title. The indorser whose Indorsement indorsement is struck out, and all indorsers subsequent to him,

are thereby relieved from liability on the instrument.

Sec. 49 Where the holder of an instrument payable to his order

transfers it for value without indorsing it, the transfer vests in the winder transferee such title as the transferor had therein, and the trans- Effect of feree acquires, in addition, the right to have the indorsement of the transferor. But for the purpose of determining whether the tranferee is a holder in due course, the negotiation_takes_effect as of the time when the indorsement is actually made. *

Sec. 50. Where an instrument is negotiated back to a prior where Privo party, such party may, subject to the provisions of this act, reissue Party may and further negotiate the same. But he is not entitled to enforce teate Negotiate payment thereof against any intervening party to whom he was personally liable.

ARTICLE IV.

RIGHTS OF THE HOLDER.

to bue Payment.

Sec. 51. The holder of a negotiable instrument may sue thereon Rta Holder in his own name; and payment to him in due course discharges the instrument. Sec. 52. A holder in due course is a holder who has taken the instrument under the following conditions:

I. That it is complete and regular upon its face;

2. That he became the holder of it before it was overdue, and without notice that it had been previously dishonored, if such was the fact;

3. That he took it in good faith and for value;

4. That at the time it was negotiated to him he had no notice of any infirmity in the instrument or defect in the title of the person negotiating it.

Sec. 55. Where an instrument payable on demand is negotiated when n an unreasonable length of time after its issue, the holder is not in

deemed a holder in due course.

Sec. 54 Where the transferee receives notice of any infirmity oce before in the instrument or defect in the title of the person negotiating full ant the same before he has paid the full amount agreed to be paid Pd. therefor, he will be deemed a holder in due course only to the

extent of the amount theretofore paid by him.

where Jette Sec. 55. The title of a person who negotiates an instrument is Defective defective within the meaning of this act when he obtained the

instrument, or any signature thereto, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.

Sec. 56. To constitute notice of an infirmity in the instrument or defect in the title of the person negotiating the same, the person to whom it is negotiated must have had actual knowledge of the infirmity or defect, or knowledge of such facts that his action in taking the instrument amounted to bad faith.

Sec. 57. A holder in due course holds the instrument free from any defect of title of prior parties, and free from defences available Aue Couse to prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties liable thereon.

When Subject Sec. 58. In the hands of any holder other than a holder in due to Oiginal course, a negotiable instrument is subject to the same defences Defenses

as

th

were non-negotiable. But a holder who derives his title

a holder in due course, and who is not himself a party to anaud or illegality affecting the instrument, has all the rights of such former holder in respect of all parties prior to the latter. who deemed Sec. 59. Every holder is deemed prima facie to be a holder in Holder due course; but when it is shown that the title of any person who are Come has negotiated the instrument was defective, the burden is on the

holder to prove that he or some person under whom he claims acquired the title as holder in due course. But the last-mentioned rule does not apply in favor of a party who became bound on the instrument prior to the acquisition of such defective title.

ARTICLE V.

LIABILITIES OF PARTIES.

Sec. 60. The maker of a negotiable instrument by making it engages that he will pay it according to its tenor, and admits the existence of the payee and his then capacity to indorse.

Sec. 61. The drawer by drawing this instrument admits the existence of the payee and his then capacity to indorse; and engages that on due presentment the instrument will be accepted or paid, or both, according to its tenor, and that if it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder, or to any subsequent indorser who may be compelled to pay it. But the drawer may

insert in the instrument an express stipulation negativing or limiting his own liability to the holder.

Sec. 62. The acceptor by accepting the instrument engages that he will pay it according to the tenor of his acceptance; and admits,

I. The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument; and

2. The existence of the payee and his then capacity to indorse. When Puson Sec. 63. A person placing his signature upon an instrument deemed otherwise than as maker, drawer or acceptor, is deemed to be an indorser, unless he clearly indicates by appropriate words his intention to be bound in some other capacity.

Sec. 64. Where a person, not otherwise a party to an instrual of ment, places thereon his signature in blank before delivery, he is regular liable as indorser, in accordance with the following rules:

I. If the instrument is payable to the order of a third person, he is liable to the payee and to all subsequent parties.

2. If the instrument is payable to the order of the maker or drawer, or is payable to bearer, he is liable to all parties subsequent to the maker or drawer.

3. If he signs for the accommodation of the payee, he is liable to all parties subsequent to the payee.

Indorser

Sec. 65. Every person negotiating an instrument by delivery or warranty, by a qualified indorsement, warrants, —

where keq. by 1. That the instrument is genuine and in all respects what it delivery

purports to be;

2. That he has a good title to it;

3. That all prior parties had capacity to contract;

4. That he has no knowledge of any fact which would impair the validity of the instrument or render it valueless.

But when the negotiation is by delivery only, the warranty extends in favor of no holder other than the immediate transferee.

The provisions of subdivision three of this section do not apply to persons negotiating public or corporation securities, other than bills and notes.

Sec. 66. Every indorser who indorses without qualification, wareablety of

rants to all subsequent holders in due course :

General Andorra

1. The matters and things mentioned in subdivisions one, two, and three of the next preceding section; and

2. That the instrument is at the time of his indorsement valid and subsisting.

And, in addition, he engages that on due presentment, it sha be accepted or paid, or both, as the case may be, according to its tenor, and that if it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder, or to any subsequent indorser who may be compelled to pay it.

Sec. 67. Where a person places his indorsement on an instrument negotiable by delivery he incurs all the liabilities of an in

dorser.

Order in which Sec. 68. As respects one another, indorsers are liable prima Indorsers are facie in the order in which they indorse; but evidence is admisSiable

Scability 1

sible to show that as between or among themselves they have agreed otherwise. Joint payees or joint indorsees who indorse are deemed to indorse jointly and severally.

Sec. 69. Where a broker or other agent negotiates an instru

Azt a Broker ment without indorsement, he incurs all the liabilities prescribed

by section sixty-five of this act, unless he discloses the name of his principal, and the fact that he is acting only as agent.

ARTICLE VI.

PRESENTMENT FOR PAYMENT.

Effect I want Sec. 70. Presentment for payment is not necessary in order to mand on charge the person primarily liable on the instrument; but if the

Puncipal

Delitor.

instrument is, by its terms, payable at a special place, and he is able and willing to pay it there at maturity, such ability and willingness are equivalent to a tender of payment upon his part. But except as herein otherwise provided, presentment for payment is necessary in order to charge the drawer and indorsers.

Sec. 7. Where the instrument is not payable on demand, presentment must be made on the day it falls due. Where it is payable on demand, presentment must be made within a reasonable time after its issue, except that in the case of a bill of exchange, presentment for payment will be sufficient if made within a reasonable time after the last negotiation thereof.

Pres. where Sec. 22. Presentment for payment, to be sufficient, must be

hot Pay

Demand

made,

and where Pay on Demand.

1. By the holder, or by some person authorized to receive

To the person primarily liable on the instrument, or if he is absent or inaccessible, to any person found at the place where the presentment is made.

Sec. 73. Presentment for payment is made at the proper

place,

Place f

1. Where a place of payment is specified in the instrument Presentment
and it is there presented;

2. Where no place of payment is specified, but the address of
the person to make payment is given in the instrument
and it is there presented;

3. Where no place of payment is specified and no address is
given and the instrument is presented at the usual place
of business or residence of the person to make payment;
4. In any other case if presented to the person to make pay-
ment wherever he can be found, or if presented at his
last known place of business or residence.

Sec. 74. The instrument must be exhibited to the person from
whom payment is demanded, and when it is paid must be delivered
up to the party paying it.

Sec. 75. Where the instrument is payable at a bank, present ment for payment must be made during banking hours, unless the person to make payment has no funds there to meet it at any time during the day, in which case presentment at any hour before the bank is closed on that day is sufficient.

Sec. 76. Where the person primarily liable on the instrument is dead, and no place of payment is specified, presentment for payment must be made to his personal representative if such there be, and if, with the exercise of reasonable diligence, he can be found.

Sec. 77. Where the persons primarily liable on the instrument Present meth are liable as partners, and no place of payment is specified, pre-pecacus as sentment for payment may be made to any one of them, even Partners. though there has been a dissolution of the firm.

Sec. 78. Where there are several persons, not partners, pri- Joint dealers marily liable on the instrument, and no place of payment is specified, presentment must be made to them all.

Sec. 79. Presentment for payment is not required in order to when not Requir charge the drawer where he has no right to expect or require that to change Naiver

the drawee or acceptor will pay the instrument.

Sec. 80. Presentment for payment is not required in order to

charge an indorser where the instrument was made or accepted Indorser
for his accommodation and he has no reason to expect that the
instrument will be paid if presented.

Sec. 8. Delay in making presentment for payment is excused when delay when the delay is caused by circumstances beyond the control of cured