tained and a liquidated amount or otherwise. (Acts 1907, Reg. Sess., c. 81.)

§ 29. Who accommodation party; liability.-An accommodation party is one who has signed the instrument as maker, drawer, acceptor or indorser, without receiving value therefor, and for the purpose of lending his name to some other person; such a person is liable on the instrument to a holder for value, notwithstanding such holder, at the time of taking the instrument, knew him to be only an accommodation party. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE III.-NEGOTIATION.

§ 30. When instrument negotiated. An instrument is negotiated when it is transferred from one person to another in such manner as to constitute the transferee the holder thereof; if payable to bearer it is negotiable by delivery; if payable to order it is negotiated by the indorsement of the holder, completed by delivery. (Acts 1907, Reg. Sess., c. 81.)

§ 31. Indorsements; place; signature sufficient. The indorsement must be written on the instrument itself or upon a paper attached thereto; the signature of the indorser, without additional words, is a sufficient endorsement. (Acts 1907, Reg. Sess., c. 81.)

§ 32. Same: must be of entire instrument. The indorsement must be an indorsement of the entire instrument; an indorsement which purports to transfer to the endorsee a part only of the amount payable, or which purports to transfer the instrument to two or more, endorsees severally, does not operate as a negotiation of the instrument; but where the instrument has been paid in part, it may be indorsed as to the residue. (Acts 1907, Reg. Sess., c. 81.)

§ 33. Same: may be in blank or special.-An indorsement may be either in blank or special; and it may also be either restrictive or qualified, or conditional. (Acts 1907, Reg. Sess., c. 81.)

§ 34. Special or blank indorsements.-A special indorsement specifies the person to whom or to whose order the instrument is to be payable; and the indorsement of such indorsee is necessary to the further negotiation of the instrument; an indorsement in blank specifies no indorsee, and an instrument so indorsed is payable to bearer, and may be negotiated by delivery. (Acts 1907, Reg. Sess., c. 81.)

§ 35. Conversion of blank into special indorsement.—The holder may convert a blank indorsement into a special indorsement by writing over the signature of the indorser which either, (1) prohibits the further negotiation of the in. dorsement. (Acts 1907, Reg. Sess., e. 81.)

§ 36. Restrictive indorsements.-An indorsement is restrictive which either, (1) prohibits the further negotiation of the instrument; or (2) constitutes the indorsee the agent of the indorser; or (3) vests the title in the indorsee in trust for or to the use of some other person; but the mere absence of words implying power to negotiate does not make an indorsement restrictive. (Acts 1907, Reg. Sess., c. 81.)

restrictive

37. Rights under restrictive indorsement.-A indorsement confers upon the indorsee the right, (1) to receive payment of the instruments; (2) to bring any action thereon that the indorser could bring; (3) to transfer his rights as such indorsee where the form of the indorsement authorizes him to do so. But all subsequent indorsees acquire only the title of the first indorsee under the restrictive indorsement. (Acts 1907, Reg. Sess.,, c. 81.)

§ 38. Qualified indorsement.-A qualified indorsement constitutes the indorser a mere assignor of the title to the instrument; it may be made adding to the indorser's signature the words "without recourse" or any words of similar import; such an indorsement does not impair the negotiable character of the instrument. (Acts 1907, Reg. Sess., c. 81.)

§ 39. Conditional indorsement.-Where an indorsement is conditional, a party required to pay the instrument may disregard

the condition, and make a payment to the indorsee or his transferee, whether the condition has been fulfilled or not; but any person to whom an instrument so indorsed is negotiated, will hold the same, or the proceeds thereof, subject to the rights of the persons indorsing conditionally. (Acts 1907, Reg. Sess., c. 81.)

§ 40. How instrument indorsed specially further negotiated.— Where an instrument, payable to bearer, is indorsed specially, it may nevertheless be further negotiated by delivery; but the person indorsing specially is liable as indorser to only such holders as make title through his indorsement. (Acts 1907, Reg. Sess., c. 81.)

§ 41. Instrument payable to several persons.-Where an instrument is payable to the order of two or more payees or indorsees who are not partners, all must indorse unless the one indorsing has authority to indorse for the others. Acts 1907, Reg Sess., c. 81.)

§ 42. Instrument drawn and payable to "cashier."—Where an instrument is drawn or indorsed to a person, as "cashier" or other fiscal officer of a bank or corporation, it is deemed prima facie to be payable to the bank or corporation of which he is such officer; and may be negotiated by either the indorsement of the bank or corporation, or the indorsement of the officer. (Acts 1907, Reg. Sess., c. 81.)

§ 43. Mode of writing signatures.-Where the name of the payee or indorsee is wrongly designated or mispelled, he may indorse the instrument as therein described adding, if he think fit, his proper signature. (Acts 1907, Reg. Sess., c. 81.)

§ 44. Indorsement in representative capacity.—Where any person is under obligation to indorse in a representative capacity, he may indorse in such terms as to negative personal liability. (Acts 1907, Reg. Sess., c. 81.)

§ 45. Negotiation prima facie precedes maturity.-Except where an indorsement bears date after the maturity of the in

strument, every negotiation is deemed prima facie to have been effected before the instrument was overdue. (Acts 1907, Reg. Sess., c. 81.)

§ 46. Indorsement presumed made at place of date. Except where the contrary appears, every indorsement is presumed prima facie to have been made at the place where the instrument is dated. (Acts 1907, Reg. Sess., c. 81.)

§ 47. Duration of negotiability.-An instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed or discharged by payment or otherwise. (Acts 1907, Reg. Sess., c. 81.)

§ 48. Striking out indorsement; effect.-The holder may at any time strike out any indorsement which is not necessary to his title; the indorser whose indorsement is struck out, and all indorsers subsequent to him are thereby relieved from liability on the instrument. (Acts 1907, Reg. Sess., c. 81.)

§ 49. Transfers made without indorsement.-Where the holder of an instrument payable to his order transfers it for value without indorsing it, the transfer vests in the transferees such title as the transferrer had therein, and the transferee acquires, in addition, the right to have the indorsement of the transferrer; but for the purpose of determining whether the transferee is a holder in due course, the negotiation takes effect as of the time when the indorsement is actually made. (Acts 1907, Reg Sess., c. 81.)

§ 50. Re-issue of instrument negotiated back to prior party.— Where an instrument is negotiated back to a prior party, such party may, subject to the provisions of this act, re-issue and further negotiate the same, but he is not entitled to enforce payment thereof against any intervening party to whom he was personally liable. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE IV.-RIGHTS OF THE HOLDER.

§ 51. Holder may sue in own name; discharge by payment to him. The holder of a negotiable instrument may sue thereon in

his own name and payment to him in due course discharges the instrument. (Acts 1907, Reg. Sess., c. 81.)

§ 52. Who holder in due course.-A holder in due course is a holder who has taken the instrument under the following conditions: (1) That the instrument 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 an infirmity in the instrument or defect in the title of the person negotiating it. (Acts 1907, Reg. Sess., c. 81.)

§ 53. Same: time of negotiation.—Where an instrument payable on demand is negotiated an unreasonable length of time after its issue, the holder is not deemed a holder in due course. (Acts 1907, Reg. Sess., c. 81.)

§ 54. Same: notice of infirmity.-Where the transferee receives notice of any infirmity in the instrument or defect in the title of the person negotiating the same before he has paid the full amount agreed to be paid therefor, he will be deemed a holder in due course only to the extent of the amount theretofore paid by him. (Acts 1907, Reg. Sess., c. 81.)

§ 55. When title deemed defective. The title of a person who negotiates an instrument is 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 any illegal consideration or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud. (Acts 1907, Reg. Sess., c. 81.)

§ 56. What is notice of infirmity. 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. (Acts 1907, Reg. Sess., c. 81.)