페이지 이미지
PDF
ePub

ARTICLE III.

NEGOTIATION.

$ 3111. What constitutes negotiation.
$ 3112. Indorsement; how made.
$ 3113. Indorsement must be of entire instrument.
$ 3114. Kinds of indorsement.
$ 3115. Special indorsement.
$ 3116. Blank indorsement; how changed to special indorsement.
$ 3117. When indorsement restrictive.

3118. Effect of restricting indorsement; rights of indorsee.
$ 3119. Qualified indorsement.
$ 3120. Conditional indorsement.
$ 3121. Indorsement of instrument payable to bearer.
8 3122. Indorsement where payable to two or more persons.
8 3123. Effect of instrument drawn or indorsed to a person as cashier.
$ 3124. Indorsement where name is misspelled, etc.
$ 3125. Indorsement in representative capacity.
$ 3126. Time of indorsement; presumption.
$3127. Place of indorsement; presumption.
§ 3128. Continuation of negotiable character.
$ 3129. Striking out indorsement.
§ 3130. Transfer without indorsement; effect of.
§ 3131. When prior party may negotiate instrument.

3111. WHAT CONSTITUTES NEGOTIATION. An instrument is negotiated when it is transferred from one person to another in such manner as to con. stitute the transferee the holder thereof. If payable to bearer it is negotiated by delivery; if payable to order it is negotiated by the indorsement of the holder completed by delivery.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. In effect July 31, 1917.

8 3112. INDORSEMENT; HOW MADE. 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 indorsement.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. In effect July 31, 1917.

8 3113. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. in effect July 31, 1917.

8

8 3114. KINDS OF INDORSEMENT. An indorsement may be either special or in blank; and it may also be either restrictive or qualified, or conditional.

History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1538. In effect July 31, 1917.

8 3115. SPECIAL INDORSEMENT. A special indorsement specifies the person to whom, or to whose order, the instrument is to be payable; and the indorse'ment 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. In effect July 31, 1917.

8 3116. BLANK INDORSEMENT; HOW CHANGED TO 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. In effect July 31, 1917.

83117. WHAT INDORSEMENT RESTRICTIVE. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1538. In effect July 31, 1917.

8 3118. EFFECT OF RESTRICTING INDORSEMENT; RIGHTS OF INDORSEE. A restrictive indorsement confers upon the indorsee the right

1. To receive payment of the instrument;
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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3119. QUALIFIED INDORSEMENT. A qualified indorsement constitutes the indorser a mere assignor of the title to the instrument. It may be made by 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3120. CONDITIONAL INDORSEMENT. Where an indorsement is conditional, a party required to pay the instrument may disregard the condition, and make 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 person indorsing condi. tionally.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

§ 3121. INDORSEMENT OF INSTRUMENT PAYABLE TO BEARER. 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 (take) title through his indorsement.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3122. INDORSEMENT WHERE PAYABLE TO TWO OR MORE 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effeat July 31, 1917.

8 3123. EFFECT OF AN INSTRUMENT DRAWN OR INDORSED TO A PERSON AS 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917,

p. 1539. In effeat July 31, 1917. 1. Indorsement in due course-Good faith, time vhen he takes the instrument, although

It is sufficient to constitute good faith he may have had notice at some previous that the holder of negotiable paper has time.-Heney v. Sutro, 28 Cal. App. 698, 153 no knowledge of the defect of title at the Pac. 972.

8 3124. INDORSEMENT WHERE NAME IS MISSPELLED, ETC. Where the name of a payee or indorsee is wrongly designated or misspelled, he may indorse the instrument as therein described, adding, if he think fit, his proper signature.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3125. 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 personal liability.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3126. TIME OF INDORSEMENT; PRESUMPTION. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

§ 3127. PLACE OF INDORSEMENT; PRESUMPTION. Except where

8 the contrary appears, every indorsement is presumed prima facie to have been made at the place where the instrument is dated.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. in effect July 31, 1917.

8 3128. CONTINUATION OF NEGOTIABLE CHARACTER. An instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed or discharged by payment or otherwise.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1539. In effect July 31, 1917.

8 3129. STRIKING OUT INDORSEMENT. The holder may at any time strike out any indorsement which is not necessary to his title. The indorser whose indorsement is struck out, and all indorsers subsequent to him, are thereby relieved from liability on the instrument.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1540. In effect July 31, 1917.

8 3130. TRANSFER WITHOUT INDORSEMENT; EFFECT OF. Where the holder of an instrument payable to his order transfers it for value without indorsing it, the transfer vests in the transferee such title as the transferor had therein, and the transferee acquires, in addition, the right to have the indorsement of the transferor. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917,

p. 1540. In effect July 31, 1917. 1. Presentation and demand-Notice.-It the opportunity to pay and overcome "the is the duty of the holder to present the equivalent to an offer of payment on his note at maturity where the maker had part."-First Nat'l Bank v. Pennig, 28 Cal. agreed it should be paid to give the latter App. 267, 151 Pac. 1153.

8 3131. WHEN PRIOR PARTY MAY NEGOTIATE INSTRUMENT. Where an instrument is negotiated back to a prior party such party may, subject to the provisions of this title, reissue and further negotiate the same. But he is not entitled to enforce payment thereof against any intervening party to whom he was personally liable.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1540. In effect July 31, 1917.

ARTICLE IV.

RIGHTS OF THE HOLDER.
8 3132. Right of holder to sue; payment.
§ 3133. What constitutes a holder in due course.
8 3134. When person not deemed holder in due course.
8 3135. Notice before full amount paid.
8 3136. When title defective.
8 3137. What constitutes notice of defect.
§ 3138. Rights of holder in due course.
§ 3139. When subject to original defenses.
8 3140. When deemed holder in due course.

8 3132. RIGHT OF HOLDER TO SUE; PAYMENT. The holder of a negotiable instrument may sue thereon in his own name and payment to him in due course discharges the instrument.

History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1540. In effect July 31, 1917.

8 3133. WHAT CONSTITUTES A HOLDER IN DUE COURSE. A holder in due course is a holder who has taken the instrument under the following conditions:

1. That it 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.

History: Enactment approved June 1, 1917, Stats. and Amdts. 1917, p. 1540. In effect July 31, 1917.

83134. WHEN PERSON NOT DEEMED HOLDER IN DUE COURSE. 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.

History:

Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1540. In effect July 31, 1917.

8 3135. NOTICE BEFORE FULL AMOUNT PAID. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917,

p. 1540. In effect July 31, 1917. 1. Purpose of extension of maturity.-- payment or prevent the running of the The maturity of a note payable on demand statute of limitations so far as an action is extended only for the purpose of prescrib- upon the note against the maker is coning a time within which the note may be cerned.-Merchants Nat. Bank v. Bentel, 166 presented in order to fix the liability of Cal. 473, 137 Pac. 25. the indorser and not to extend the time of

§ 3136. WHEN TITLE DEFECTIVE. The title of a person who negotiates an instrument is defective within the meaning of this title when he obtained the instrument, or any signature thereto, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1541. In effect July 31, 1917.

8 3137. WHAT CONSTITUTES NOTICE OF DEFECT. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1541. In effect July 31, 1917.

§ 3138. 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.

History: Enactment approved June 1, 1917, Stats, and Amdts. 1917, p. 1541. In effect July 31, 1917.

« 이전계속 »