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 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.)

§ 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, Reg. 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.)

§ 63. Indorser; who deemed such; liability.-A person placing his signature upon an instrument 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. (Acts 1907, Reg. Sess., c. 81.)

§ 64. Where a person, not otherwise a party to an instrument, places thereon his signature in blank before delivery, he is liable as indorser in accordance with the following rules: (1) 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. (Acts 1907, Reg. Sess., c. 81.)

§ 65. Warranties of person negotiating instrument by delivery. -Every person negotiating an instrument by delivery or by a qualified indorsement, warrants (1) that the instrument is genuine and in all respects what it 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 sub-division three of this section do not apply to persons negotiating public or corporate securities, other than bills and notes. (Acts 1907, Reg. Sess., c. 81.)

§ 66. Warranties of indorser.-Every indorser who indorses without qualification, warrants to all subsequent holders in due course, (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 shall 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. (Acts 1907, Reg. Sess., c. 81.)

§ 67. When liabilities of indorser incurred. When a person places his endorsement on an instrument negotiable by delivery he incurs all the liabilities of an indorser. (Acts 1907, Reg. Sess., c. 81.)

§ 68. Order of liability of indorsers. As respects one another, indorsers are liable prima facie in the order in which they indorse; but evidence is admissible to show that as between or among themselves they have agreed otherwise. Joint payees or joint indorsers who indorse are deemed to indorse jointly and severally. (Acts 1907, Reg. Sess., c. 81.)

§ 69. Where agent negotiates instrument. Where a broker or other agent negotiates an instrument 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. (Acts 1907, Reg. Sess., c. 81.)

ARTICLE VI.-PRESENTMENT FOR PAYMENT.

70. Presentment: necessity.-Presentment for payment is not necesary in order to charge the person primarily liable on the instrument; but if the 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. (Acts 1907, Reg. Sess., c. 81.)

71. Same time.--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. (Acts 1907, Reg. Sess., c. 81.)

§ 72. Same: how made.-Presentment for payment to be sufficient, must be made (1) by the holder or by some person authorized to receive payment on his behalf; (2) at a reasonable hour on a business day; (3) at a proper place as herein defined; (4) to the person primarily liable on the instrument, or if he is ab