The Birmingham age-herald., 1907-08-29

ton of the instrument. But where the instrument has been paid in part, it may be ndorsed as to the residue.
 Sec. g. An indorsement may be either in blank or special; and it may also be either restrictive or qualified, or condi tional.
 Sec. a. A special indorsement specifics the person to whom, or to whose order the instrument is to be payable; and the indorsement of such indorsee is necessary to a further negotiation of the instru- ment. An indorsement in blank specifics no indorsee, and an instrument so in- dorsed is payable to bearer, and may be negotiated by delivery.
 Sec. 35 The holder may convert blank indorsement into a special indorsement by writing over the signature of the in- dorser in blank any contract consistent with the character of the indorsement.
 Sec. 36 An indorsement is restrictive | which either-1. Prohibits the further ne gotiatlon of the instrument; or, ?, Con stitutes the indorsee the agent of the indorser: or 3, vests the title in the in- dorsee in trust for or to the use of some other person. But the mere absence of words implying power to negotiate does not make the indorsement restrictive.
 Sec B. A restrictive indorsement con- fers upon the indorsee the right 1. To receive payment of the inrstument. 2. To bring any action thereon that the ln- dorser could bring. g. To transfer his rights as such indorsee, where the form of the indorsement authorizes him to do so But all subsequent indorsees ac- auire only the title of the first indorsee under the restrictive indorsement.
 Sec B. A qualified indorsement const1- tutes the indorses mere assignor of the title to the instrument. It may be made by adding to the lndorser's sigma ture the words without recourse or many words of similar import. Such an indorsement does not impair the nego- liable character of the instrument.
 Sec. 39. Where an idorsement Is condi- tional, party required to pay the in- strument may disregard the condition, and make a payment to the indorsee or his transferee, whether the conditions have been fulfilled or not. But any per- son to whom an instrument so indorsed IS neROlldltut VIII ilpib NiAC 'fii'N' | the proceeds thereof, subject to the rights of the person indorsing conditlonally.
 Sec. 4O Where an instrument, payable to bearer. is indorsed specially, 1t may nevertheless be further negotiated by de- livery; but the person indorsing specially is liable as indorser to only such holders as take title through his indorsement.
 Sec. A. Where an instrument is pay able to the order of two or more payees or indorsees who are not partners, all must indorse unless the one indorslng has authority to indorse for the others
 Sec. 42 Where an instrument is drawn or indorsed to a person. as cashier or other officer of bank or corporation, | it is deemed prima facie to be payable l to the bank or corporation of which he is such officer: and may be negotiated by either the indorsement of the bank or cor poration, or the indorsement of the off cer.
 Sec. 4s. Where the names of the payee, or ndorsee is wrongfuly designated or 1 mspelled, he may indorse the instrument as therein described, adding, if he thinks fit, his proper signature.
 Sec A. Where any person is under obli- | fiatlon to indorse in representative ca pacity, he may indorse in such terms as to negative personal liability.
 Sec 45 Except where an indorsement bears date after the maturity of the In strument every negotiation is deemed prima facie to have been affected before l the instrument was over due.
 Sec 46 Except where the contrary ap- pears, every indorsement is presumed prima facie to have been made at the place where the instrument is dated.
 Sec. AT. An instrument negotiable in it's origin continues to be negotiable until it has been restrctively indorsed or dis charged by payment or otherwise.
 Sec. AS. The owner may at any time strike out any indorsement which is not necessary to his title, The indorser whose indorsement Is struck out and all in | dorsers subsequent to him, are thereby relieved from liability on the instrument.
 Sec 49 Where the holder of an in strument payable to his order transfers 1t TOT value without indorsng 1t, the transfer vests in the tranferee such title as the said holder had therein, and the transferee acquires, in addition, the right to have the indorsement of the said holder. But for the purpose of deter mining whether the transferee is a holder | in due course the negotiation takes effect as of the time when the indorsement Is actually made.
 l 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 enforce payment thereof against any intervening party to whom he was personally liable. Sec 51. The holder of a negotiable in strument may sue thereon in his own name and payment to him in due course discharges the instrument
 1 Sec. 52 A holder in due course is a | holder who has taken the instrument un- der the following eonditions l. That the 1 instrument is complete and regular upon It's face ,. That he became the holder of it before it was overdue, and without mo- tice that it had been previously dishon- ored if such was the fact. 3. That he took 1 it in good faith and for value l. That at | the time it was negotiated to him he had no notice of any infirmity in the instru- ment or defect in the title of the person negotiating it.
 Sec 53. Where an instrument payable on demand is negotiated an unreasonable