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to bearer may be transferred by either indorsement or delivery. Strictly speaking there can be no indorsement of non-negotiable instruments.

SECTION 19. METHOD OF INDORSEMENT.

The proper and ordinary method of indorsement is by writing upon the back of the instrument; an indorsement, however, may be made on the face of the note. In case of two indorsements on opposite ends of a note, the presumption is that the payee is first indorser, regardless of the respective position of the names. The indorsement must be on the instrument itself;" a separate writing may constitute an assignment, but not an indorsement.

An indorsement must be in writing, but no particular form of words is required.10 In Herring vs. Woodhill 11 the Court said on this point:

“The first point made in this case is, that the note was not properly indorsed, the transfer being on the face of the note. Literally, indorsement means a writing indorsed upon the back of the bill or note. But it is well established, that though such is its import, it may be made on the face of the bill, and numerous indorsements may be made on a separate paper called an allonge. Yarborough vs. Bank of England, 16 East, 12; Rex vs. Bigg, 1 Strange, 18; Story on Promissory Notes, sec. 121; Gibson vs. Powell, 6 Howard (Miss.), 60. And any form is sufficient which manifests an intention to transfer the note. Morris vs. Bird, 11 Mass., 436.

. • Kern vs. Hazlerigg, 11 Ind., 443; • National Bank vs. Leonard, 91 71 Am. Dec., 360.

Ga., 805. • Shain vs. Sullivan, 106 Cal., 208; Syracuse Third Nat. Bank vi. Herring vs. Woodbill, 29 mi., Clark, 23 Minn., 263.

10 Douglass vs. Wilkeson, 6 Wend. Arnat yo. Svmarde, 85 Pa. St., 99.

(N. Y.), 637. Williams vs. Osborn, 75 Ind., 280. 11 29 II., 92, 99.

92.

"This indorsement is in the form of a guaranty, and is sufficient to convey and transfer the title in the note to the holder as an indorsement. Heaton vs. Hurlbert, 3 Scam., 489; Partridge vs. Davis, 20 Verm., 499. This principle is well established.”

The indorsement must be signed by the indorser," but no particular form of signature is necessary. A stamped indorsement is sufficient, as are also the initials" or mark of the indorser.15 Even figures written upon the back of a bill or note have been held to be a sufficient indorsement.16

SECTION 20. FORMS OF INDORSEMENT.

An indorsement in blank is one where the indorser merely writes his name on the instrument. Such an indorsement renders the instrument payable to whoever may hold it.17 A bill or note indorsed in blank is equivalent to one payable to bearer.

Any bona fide holder of a bill or note indorsed in blank may write over the name of the indorser his own name or any contract consistent with the character of the indorsement, thus restricting the character of the indorsement.18

An indorsement in full is one containing the name of the person to whom payment is to be made. Such a note can only be collected by the payee named or his indorsee, and can only be transferred by another indorsement.10 u Myers vs. Wright, 33 m., 284.

though it was shown that the » Lyon First Nat. Bank vs. Smith,

indorser could write. 132 Mass., 227.

17 Peacock vs. Rhodes, 2 Doug, 14 Merchants Bank V8. Spicer, 6

633; Grant vs. Vaughan, 3 Wend. (N. Y.), 443.

Burrows, 1516. George vs. Surrey, M. & M., 516; u Russell vs. Langstaffe, 2 Doug., 22 E. C. L., 371.

514. Brown vs. Butchers, etc., Bank, • Edie vs. East India Co., 1 W. 6 Hill (N. Y.), 443, where the

Bl., 295; Hodges ve. Adams, figures "1, 2, &" were held to

19 Vt., 74. constitute an indorsement, al

An indorsement without recourse is one by which the indorser exempts himself from liability to the holder upon the dishonor of the bill or note. Such an indorsement leaves the indorser still liable upon the warranties existing in all cases of indorsement, such as the warranty of the genuineness of the signatures.20

A conditional indorsement is one where the title does not pass until the condition mentioned in the indorsement is fulfilled.

A restrictive indorsement is a transfer of the title either for the purpose of collection, or to be held in trust. The first purpose is secured by such indorsements as "For deposit," or "For collection;" and the second by such indorsements as “Pay to A on order for account of B,or “Pay to A for my use."

SECTION 21. DUAL CHARACTER OF CONTRACT OF IN

DORSEMENT.

The contract of indorsement (except in a few special instances elsewhere discussed) is in reality a double contract. There is first an executed contract operating to transfer to the indorsee such title to the chose in action as the indorser possesses, and secondly, an executory contract by which the indorser undertakes that the bill or note shall be paid at maturity." The liability of an indorser under such executory contract will be discussed in the next chapter.

SECTION 22. ANOMALOUS INDORSEMENTS.

An anomalous indorsement is treated in a section by itself for the reason that it is not strictly an indorsement, but in reality more nearly a guaranty. This * Hannum vs. Richardson, 48 Vt.,

a See Minor on Conflict of Law, 508; Challins vs. McCrum, 23

Sec. 165. Kan., 157

form of indorsement arises where the indorsement is made before the delivery of the bill or note to the payee.

A person whose name is on the back of a bill or note, transferable by delivery, or payable to bearer, is to be deemed an indorser.

A person signing on the back of a bill or note payable to order before the payee is prima facie presumed to be a second indorser, and not liable to the payee; but this may be rebutted by showing that his indorsement was given to give the maker credit with the payee, and he thus becomes liable as first indorser, the payee being permitted to indorse to him without recourse.” »

* Morton on Bills and Notes, Secs. 67 and 08.

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