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§ 17. Rules of construction.--Where the language of the instrument is ambiguous or there are omissions therein the following rules of construction apply: (1) Where the sum payable is expressed in words and also in figures and there is a discrepancy between the two the sum denoted by the words is the sum payable; but if the words are ambiguous or uncertain, reference may be had to the figures to fix the amount. (2) Where the instrument provides for the payment of interest without specifying the date from which interest is to run, the interest runs from the date of the instrument and if the instrument is undated, from the issue thereof. (3) Where the instrument is not dåted it will be considered to be dated as of the time it was issued. (4) Where there is a conflict between the written and printed provisions of the instrument, the written provisions prevail. (5) Where the instrument is so ambiguous that there is doubt whether it is a bill or a note, the holder may treat it as either at his election. (6) Where a signature is so placed upon the instrument that it is not clear in what capacity the person making the same intended to sign, he is to be deemed an endorser. (7) Where an instrument containing the words "I promise to pay" is signed by two or more persons they are deemed to be jointly and severally liable thereon. (Acts 1907, Reg. Sess., c. 81.)

§ 18. Signature: necessity; when in trade or assumed name.— No person is liable on the instrument whose signature does not appear thereon except as herein otherwise expressly provided; but one who signs in a trade or assumed name will be liable to the same extent as if he had signed in his own name. (Acts 1907, Reg Sess., c. 81.)

19. Same: by agent. The signature of any party may be made by a duly authorized agent; no particular form of appointment is necessary for this purpose, and the authority of the agent may be established as in other cases of agency. 1907, Reg. Sess., c. 81.)

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§ 20. Where the instrument contains, or a person adds to his signature words indicating that he signs for or on behalf of the principal or in a representative capacity, he is not liable on the instrument if he was duly authorized; but the mere addition of words describing him as an agent or as filling a representative

character without disclosing his principal, does not exempt him from personal liability. (Acts 1907, Reg Sess., c. 81.)

§ 21. A signature by procuration operates as notice that the agent has but limited authority to sign, and the principal is bound only in case the agent in so signing acted within the actual limits of his authority. (Acts 1907, Reg. Sess., c. 81.)

§ 22. Negotiation by corporation or infant. The indorsement or assignment of the instrument by a corporation or by an infant passes the property therein, notwithstanding that from want of capacity the corporation or infant may incur no liability thereon. (Acts 1907, Reg. Sess., c. 81.)

§ 23. When signature forged or made without authority. Where a signature is forged or made without the authority of the person whose signature it purports to be, it is wholly inoperative and no right to retain the instrument or to give a discharge therefor or to enforce payment thereof against any party thereto, can be acquired through or under such signature unless the party against whom it is sought to enforce such right is precluded from setting up the forgery or want of authority. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE II.-CONSIDERATION.

§ 24. Presumption of consideration.--Every negotiable instrument is deemed prima facie to have been issued for a valuable consideration, and every person whose signature appears thereon to have become a party thereto for value. (Acts 1907, Reg. Sess., c. 81.)

§ 25. What is value.-Value is any consideration sufficient to support a simple contract; an antecedent or pre-existing debt constitutes value, and is deemed such, whether the instrument is payable on demand or at a future time. (Acts 1907, Reg. Sess., c. 81.)

§ 26. When one holder for value; lien.-Where value has at any time been given for the instrument, the holder is deemed a holder for value in respect to all parties who became such prior to that time. (Acts 1907, Reg. Sess., c. 81.)

27. Whether the holder has a lien on the instrument, arising either from contract or by implication of law, he is deemed a holder for value to the extent of his lien. (Acts 1907, Reg. Sess., c. 81.)

§ 28. Failure of consideration as matter of defense.-Absence or failure of consideration is a matter of defense as against any person not a holder in due course, and partial failure of consideration is a defense pro tanto, whether the failure is an ascertained 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 indorser is payable to bearer, and may be negotiated by delivery. (Acts 1907, Reg. Sess., c. 81.)

§ 35. The holder may convert a blank indorsement into a special indorsement by writing over the signature of the indorser in blank, any contract consistent with the character of the indorsement. (Acts 1907, Reg. Sess., c. 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.)

§ 37. A restrictive 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 misspelled, 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 personall 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

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