The Montgomery advertiser., 1907-08-29

sequent iuuOfbees acquire Only the tl- tie of the first indorsee under the re- strictive indorsement. Sec. 3S. A qualified indorsement constitutes the indorser a mere as- signor of the title to the instrument. It may be made by adding to the in- dorsers signature the words without recourse or many words of similar irn- port. Such an indorsement does not impair the negotiable character of the instrument.
 Sec. S9 Where an indorsement is conditional. party required to pay the instrument may disregard the con- dition, and make payment to the in- dorsee or his transferee whether the conditions have been fulfilled or not But any person to whom an instrument so indorsed is negotiated, will hold the same, or the proceeds thereof, sub ject to the rights of the person in- dorsing conditionally.
 Sec. 40 Where an instrument, pay able to bearer, is indorsed specially, 1t may nevertheless be further nego- tiated by delivery; but the person in dorsing specially is liable as indorser to only such holders as take title through his indorsement
 Sec Al. Where an instrument is pay- able to the order of two or more pay ees or indorsees who are not partners.
 
 ing has authority to indorse for the others.
 Sec. 42. Where an instrument is drawn or indorsed to person, as Cashier or other officer of a bank or corpora- ton, 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 in- QOrSement of the officer
 Sec. 4S. Where the names of the payee, or indorsee is wrongfully des- ignated or mispelled, he may indorse the Instrument as therein described adding, if he think it. his proper sig nature.
 Sec. A. Where any person is under obligation to indorse in a representa- tive capacity, he may lndorse in such terms as to negative personal liabil- ity.
 Sec 45. Except where an indorse- ment bears date after the maturity of the instrument, every negotiation is deemed prima facie to have been af- fected before the instrument was over due.
 Sec. 4s. Except where the contrary appears. every indorsement Is pre- sumed prima facie to have been made at the place where the instrument is dated.
 Sec. AT. An instrument negotiable in its origin continues to be negoti- able until 1t has been restrictively in- dorsed or discharged by payment or otherwise.
 Sec. 4S. The owner may at any time strike out any indorsement which is not necessary to his title. The in- dorser whose Endorsement Is struck out and all indorsers subsequent to him, are thereby relieved from liability en the instrument.
 Sec 4s. Where the holder of an in- strument payable to his order trans- fers 1t for value without indorsing it, the transfer vests in the transferee such title as the said holder had there in, and the transferee acquires, in ad- dition, the right to have the indorse- ment of the said holder. But for the purpose of determining whether the transferee is holder in due course, the negotiation takes effect as of the time when the indorsement Is actually made.
 Sec 50. Where an instrument is ne- gotiated back to a prior party, such party may, subject to the provisions of this act, reissue and further negotiate the same, but he is not entitled to en- force payment thereof against any in- tervening party to whom he was per- sonally liable. -
 Sec. 5I. The holder of 6 negotiable instrument may sue thereon in his own name and payment to him in due course discharges the instrument
 Sec 52. A holder in due course Is a holder who has taken the instrument under the following conditions: l. That the instrument is complete and regu- lar upon its face g. That he became the holder of it before 1t was overdue, and without notice that it had been previously dishonored if such was the fact. 3. That he took 1t in good faith and for value. 1. That at the time 1t was negotiated to him he had no notice of any. infirmity in the instrument or defect In the title of the person nego- tiating it.
 Sec. 5S. Where an instrument pay. able on demand is negotiated an un.S reasonable length of time, after its issue, the holder is not deemed a hold CT in due course.
 Sec. 54. Where the transferee re- ceives notice of any inirmity 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 ex- tent of the amount heretofore paid by him.
 Sec 55. The title of a person who
 
 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 an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.
 Sec. 56. 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.
 Sec. 57. As 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 en- force payment of the instrument for the full amount thereof against all parties liable thereon.
 Sec 5S 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 negotiable. But a holder who derives his title through holder in due course, and who is not himself party to any fraud or illegality affecting the in strument, has all the rights of such latter.
 Sec. 59.-Every holder is deemed prlma facie to be a holder in due course; but when it is shown that the the instrument was defective, the bur Is fO hnf hn