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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.)

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§ 35. The holder may convert 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.)

S 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 instrument, 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 necesary 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 inforce 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.)

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§ 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 any infirmity in the instrument or defect in the title of the person negotiating it. (Acts 1907, Reg. Sess., c. 81.)

$ 53. 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, Rey. Sess., c. 81.)

57. What are rights of holder in due course.—A holder in due course holds the instrument free from any defect of title of prior parties, and free from defenses available to prior parties among themselves and may enforce payment of the instrument for the full amount thereof against all parties liable thereon. (Acts 1907, Reg. Sess., c. 81.)

§ 58. Rights of one not holder in due course. In the hands of any holder other than a holder in due course, a negotiable instrument is subject to the same defenses as if it were non-nego. tiable; but a holder who derives his title through a holder in due course, and who is not himself a party to any fraud or illegality affecting the instrument, has all the rights of such former holder in respect of all parties prior to the latter. (Acts 1907, Reg. Sess., c. 81.)

$ 59. Proof of title; presumption.—Every holder is deemed prima facie to be a holder in due course; but when it is shown that the title of any person who 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 a holder in due course; but the last mentioned rule does not apply in favor of the party who became bound on the instrument prior to the acquisition of such defective title. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE V.-LIABILITIES OF PARTIES.

$ 60. Maker.-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 endorse. (Acts 1907, Reg. Sess., c. 81.)

$ 61. Drawer.— The drawer by drawing the instrument admits the existence of the payee and his then capacity to endorse, and engages that on due presentment of the instrument it 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. (Acts 1907, Reg. Sess., c. 81.)

$ 62. Acceptor.—The acceptor by accepting the instrument engages that he will pay it according to the tenor of his acceptance, and admits (1) 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 endorse. (Acts 1907, Reg. Sess., c. 81.)

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