The Providence news. (Providence [R.I.]) 1891-1906, 1899-08-03


amounted TO bad faith
Sec. 81. A holder I'm due course holds tho
instrument free from any defect ~ ttt,a ~
prior parties. and free from defenae.
available to prior parties anonr tber,- :
selves. and may enforce payment OF the
instrument for the fun amount thereof
against all parties liable thereon
Sec. &C. In the hands of anv hoia. .,.,
er than holder In due course q nego,ia-
bic instrument is subject 10 tba ao,,,a A.
fenses as II IL were non-negotiahls p,,t
a holder who derives his titie ,hro,,rh
holder I'm due course. and who Is not birn-
self party TO any fraud or illegaiIty az
fecting the instrument has all the rights
OF such former holder in resnect ~ al,
parties prior TO the latter.
Sec. 81. Every holder is eaenod ,,r,.s..
facie TO be holder IN due cou,sa. -,
when IL is shown that the title 30 o.,
person who has negotiated the ins,rn,,'a,,
was defective. the burden Is on the hnISa,
TO prove that he or some persor ,,ades
whom he claims acquired the title as a
holder In due course But Tho last -,
toned rule does not apply in favor &C.. insn- s
party Who became bound on the S,s,-,'
ment prior 10 the acquisition Of such de-
fective title.
ARTICLE W.
Liabilities OF Parties
Sec e8. The maker OF a negotlahie In
strument by making II engages thai n.
will pay II according TO its tenor; and ad-
mits the existence Of the payee and HE
then capacity TO indorse.
Sec. g. The drawer by drawing tho In
utrument admits the existence NJ The
payee and his then capacity 10 indorsa.
and engages that on due presentnoo,t a.,
instrument will be accepted or noid -,
both, according TO its tenor and thai ~ n
be dishonored. and the necessary nra.
4
eeedIngs on dishoror u duly taken he
will pay the amount thereof 10 the boldor
or TO any subsequent indorser who n,ay
be compelled to pay IT, But tho drawer
may insert in the Instrument AN ernross
stipulation pegafiving or limiting his own
liability to the holder.
Sec. TO- The acteptor by accentlne ,ha
instrument engages that he viii nav a.
according to the tenor Of his acceptance:
and admits:
uineness of his signature. aud his ca
pacity and authority to draw the instru-
ment; and
2. The existence Of the payee and his
then capacity TO indorse.
Sec. II. A person placing his signature
upon an instrument otherwise than as
maker, drawer or acceptor is deemed 10
be an indorser. unless he clearly indicates
by appropriate words his intention TO he
Sec. 72. 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:
I. III the instrument is payable 10 the
order Of third person he is liable 10
the payee and to all subsequent parties
q If the INSTRUMENT is payable TO the
order OF the maker or drawer. or is paya-
subsequent TO the maker or drawer
g. lf he signs for the accommodation of
the payee, he is liable 10 all parties sub
sequent to the payee.
Sec. 73. Every person negotiating an in
strument by delivery or by a qualified
Endorsement. warrants:
1. That the instrument is genuine and In
all respects what IL purports 20 be:
That ne has a good title 10 It:
3-That all prior parties had capacity TO
contract:
l. That he has no knowledge OF any
fact which would impair the validity of
the instrument or render II valueless
But when the negotiation Is by delivery
only, the warranty extends in favor of no
holder other than ths immediate trans
feree.
The provisions OF subdivision three of
this section do not apply TO persons ne
other than bills and Lotes.
Sec. "A. Every indorser who indorses
without qualification warrants 10 all sub
sequent holders in due course;
I. The matters and things mentioned I'm
subdivisions one, two and three of the
next preceding section: and
2 That the instrument is at the time o:
his Endorsement valid and subssting.
And in addition he engages that on due
N no m p,pn han ha Tod afafH
or both. as the case may be. according te
It's tenor. and that IL Il be dishonored and
the necessary proceedings on dishonor be
duly taken, he will pay the amount there
of 10 the holder or 10 any subsequent i'm
dorser who may be compelled TO pay IL.
Sec. 15. Where a person places his In
dorsement on an instrument negotiable
by delivery he incurs all the liabilities
OF an indorser.
Sec. &c. AS respects one another, ndors-
ers are liable prima facie In the order in
which they indorse: but evidence Is adj
missible to show that as between or
among themselves they have agreed 9TH
erwise. Joint payees or Joint indorsees
who indorse are deemed TO indorse Jointly
and severally.
Sec. a. Where a broker or other agent
negotiates an instrument without indorse-
ment he incurs all the liabilities pre-
scribed by section seventy-three Of this
act. unless he discloses the name OF his
principal and the fact that he " acting
only as agent.
ARTICLE W.
Presentment for Payment
Sec. iS Presentment for payment Is not
necessary I'm order TO charge the person
primarily liable on the instrument but
II the instrument Is. By It's terms. paya-
-nie- AZ special place. and he Is able ana
willing to pay II there at maturity. such
ability and willingness are equivalent 10 q
tender of payment upon his part But
except as herein otherwise provided. pre-
sentiment for payment r. necessary In or
der TO charge the drawer and indorscrs.
Sec. 10. Where the Instrument is not
payable on demand. presentment must be
made on the day IL falls due. Where u
is payable on demand. presontment must
be made within n reasonable time after
It's issue. except that I'm the case Of a bill
or exchange presentmcnt for payment VIII
DE sufficient IL made within a reasonable
time after the last negotiation thereof.
Sec. So Presentment for payment, 10 be
sufficient. must be made:
]. BY the holder. or by some person au-
thorized to receive pa uyment on his behalf
Z. Az reasonable hour on e business
day:
.. Al proper place as herein defined.
=. To the person primarily liable on the
instrument. or. II ne r. absent or inac-
cesSiblc. TO any person found al Che place