### Bills of Exchange Ordinance 《匯票條例》

29. Holder in due course
(1) A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely—
(a) that he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact;
(b) that he took the bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it.
(2) In particular, the title of a person who negotiates a bill is defective within the meaning of this Ordinance when he obtained the bill, or the acceptance thereof, 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 in such circumstances as amount to a fraud.
(3) A holder (whether for value or not) who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.
[cf. 1882 c. 61 s. 29 U.K.]

30. Presumption of value and good faith
(1) Every party whose signature appears on a bill is prima facie deemed to have become a party thereto for value.
(2) Every holder of a bill is prima facie deemed to be a holder in due course; but if, in an action on a bill, it is admitted or proved that the acceptance, issue, or subsequent negotiation of the bill is affected with fraud, duress, or force and fear, or illegality, the burden of proof is shifted unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.
[cf. 1882 c. 61 s. 30 U.K.]

### Bills of Exchange Ordinance 《匯票條例》

31. Negotiation of bill
(1) A bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill. 
(2) A bill payable to bearer is negotiated by delivery. 
(3) A bill payable to order is negotiated by the indorsement of the holder completed by delivery. 
(4) Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the indorsement of the transferor. 
(5) Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability. 
[cf. 1882 c. 61 s. 31 U.K.]

32. Requisites of valid indorsement
An indorsement in order to operate as a negotiation must comply with the following conditions, namely—
(a) it must be written on the bill itself and be signed by the indorser. The simple signature of the indorser on the bill, without additional words, is sufficient. An indorsement written on an allonge, or on a “copy” of a bill issued or negotiated in a country where “copies” are recognized, is deemed to be written on the bill itself;
(b) it must be an indorsement of the entire bill. A partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not operate as a negotiation of the bill;
(c) where a bill 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;
(d) where, in a bill payable to order, the payee or indorsee is wrongly designated or his name is mis-spelt, he may indorse the bill as therein described, adding, if he thinks fit, his proper signature;
(e) where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved;
(f) an indorsement may be made in blank or special. It may also contain terms making it restrictive.
[cf. 1882 c. 61 s. 32 U.K.]

### Bills of Exchange Ordinance 《匯票條例》

33. Conditional indorsement
Where a bill purports to be indorsed conditionally, the condition may be disregarded by the payer, and payment to the indorsee is valid whether the condition has been fulfilled or not.
[cf. 1882 c. 61 s. 33 U.K.]

34. Indorsement in blank and special indorsement
(1) An indorsement in blank specifies no indorsee, and a bill so indorsed becomes payable to bearer.
(2) A special indorsement specifies the person to whom, or to whose order, the bill is to be payable.
(3) The provisions of this Ordinance relating to a payee apply, with the necessary modifications, to an indorsee under a special indorsement.
(4) When a bill has been indorsed in blank, any holder may convert the blank indorsement into a special indorsement by writing above the indorser’s signature a direction to pay the bill to or to the order of himself or some other person.
[cf. 1882 c. 61 s. 34 U.K.]

35. Restrictive indorsement
(1) An indorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as, for example, if a bill is indorsed “Pay D only,” or “Pay D for the account of X,” or “Pay D or order for collection.”
(2) A restrictive indorsement gives the indorsee the right to receive payment of the bill and to sue any party thereto that his indorser could have sued, but gives him no power to transfer his rights as indorsee, unless it expressly authorizes him to do so.
(3) Where a restrictive indorsement authorizes further transfer, all subsequent indorsees take the bill with the same rights and subject to the same liabilities as the first indorsee under the restrictive indorsement.
[cf. 1882 c. 61 s. 35 U.K.]