payable, held that the Ohio law governed the indorsement because the delivery was necessary to complete the contract of indorsement. Young v. Harris, 14 B. Mon. 447.

This section is cited in Wettlaufer v. Baxter, 137 Ky. 362, 125 S. W. 741, and Foster's Adm'r. v. Metcalf, 144 Ky. 385, 138 S. W. 314.

Made.-"The

§ 31. Indorsement-How indorsement must be written (Sec. 190) on the instrument or upon a paper attached thereto. The signature of the indorser, without additional words, is a sufficient indorsement (Secs. 63, 64, 66)."

A certain signature on the back of a bill of exchange held not a sufficient indorsement to pass the title to the bill. Gray Tie & Lumber Co. v. Farmers' Bank, 109 Ky. 694, 60 S. W. 537, 22 K. L. R. 1333.

Referring to the former case of First Nat. Bank v. Bickel, 143 Ky. 754, 137 S. W. 790, the Court in the same styled case, 154 Ky. 11, 156 S. W. 856, said: "In short the ruling of the court in that case was that a person who places his name upon paper other than as maker, drawer,

or acceptor, is deemed to be an indorser, unless he indicates by proper words in the indorsement his intention to be bound in some other capacity, or his intention to be bound in some other capacity than indorser appears on the paper in connection with and as a part of the indorsement," and further held that a paper attached to the note, where these persons agreed "to sign the note for security" did not show any intention that they signed other than indorsers.

A detached paper cannot bind one as indorser on a negotiable instrument. First Nat. Bank v. Doherty, 156 Ky. 386, 161 S. W. 211.

§ 32. Indorsement Must Be of Entire Instrument.-"The indorsement must be an indorsement of the entire instrument. An indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the instrument to two or more indorsees 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."

An assignment of a part of the amount payable does not transfer the title to the paper, but

constitutes assignor trustee for the assignee. Bank of Galliopolis v. Trimble, 6 B. Mon. 599 But the assignment of a note with a credit does pass the title. Bledsoe v. Fisher, 2 Bibb 471.

§ 33. Kinds of Indorsement.-"An indorsement may be either in blank or special, and it may also be either restrictive or qualified, or conditional."

§ 34. Special Indorsements - Indorsements in Blank.-"A special indorsement specifies the person to whom or to whose order the instrument is to be payable; and the indorsement of such 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 (Sec. 65)."

An indorsement in blank of a non-negotiable note did not convert it into a negotiable instrument, nor did it give the holder any rights against the indorser under this Act; but the holder is relegated to his rights as assignee. Wettlaufer v. Baxter, 137 Ky. 362, 125 S. W. 741.

§ 35. Conversion of Blank Indorsement

Into Special Indorsement.-"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."

The above was the law of Kentucky. Bradford v. Ross, 3 Bibb 239; Caruth v. Thompson, 16 B. Mon. 572; Needhams v. Page, 3 B. Mon. 465; and such indorsement is irrevocable and may be filled up after death of indorser. Cope v. Daniel, 9 Dana 415.

But the rule laid down in these cases that the holder could not recover until he had written over the blank indorsement a formal assignment to himself, was afterwards modified to the extent of holding that one, who alleges that he is the holder and owner of the bill, may recover without filling up such indorsement, unless his title is denied, in which case plaintiff could and should do so. Gaar v. Louisville Banking Co., 11 Bush 180; Barrett v. Fort Pitt Nat. Bank, 44 S. W. 97, 19 K. L. R. 611.

But it seems that this is not the rule, even as modified, under this Act. By Section 9 it is provided that when the only or last indorsement is an indorsement in blank "the instrument is payable to bearer;" and by Section 51 that "the

holder of a negotiable instrument may sue thereon in his own name." Of course upon issue made, it becomes a matter of evidence. See Callahan v. Louisville Dry Goods Co., 140 Ky. 712, 131 S. W. 995.

§ 36. Restrictive Indorsement.-"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."

An indorsement to a bank for "collection and credit" and one for "collection on account" amount to the same thing and constitute the bank the agent of the depositor. This results in making the bank not liable for the negligence of the collecting bank if it has exercised due care in the selection. And even though the bank credit the depositor with the amount of the draft or note, it may cancel such credit if it does not receive the money. Again, payment direct to the depositor by the collecting bank will not make for