The Montgomery advertiser., 1909-09-16

instrument 70 indorssd is payable to bearer and may be negotiated by de- livery.
 Sec. ss. The holder may convert . blank indorsement into . special in- dorssment by writing over the sigma ture of the indorser in blank any con- tract consistent with the character of the indorsement.
 Sec. as. An indorsement is rsstric- tive which either:
 1, Prohibits the further negotiation of the instrument; or,
 2. Constitutes the indorsee the agent of the indorser: or.
 s. 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 restric- tive.
 Sec. s7. A restrictive indorsement eonfers upon the indorsee the right:
 1. To receive payment of the instru- ment.
 2. To bring any action thereon that the indorser could bring.
 6. To transfer his rights as such indorser, where the form of the in- dorsement authorizes him to do so.
 But all subsequent indorsees acquire only the title of the first indorsee un- der the restrictive indorsement.
 Sec. 3s. A qualified Endorsement con- stitutes the indorser . mere assignor of the title to the instrument. It may be made by adding to the in- dorser's signature the words, with out recourse" or any words of simi- lar import. Such an indorsement does not impair the negotiable character of the instrument.
 Sec. ss. Where an indorsement is conditional, Q 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. subject to the rights of the person indorsing conditionaliy.
 Sec. 40. Where an instrument, pay able to bearer, is indorsed specially. it may nevertheless be further negotiated by delivery: but the person indors- ing specially is liable as indorsed to only such holders as take title through hts Inducements.
 Sec. 41. Where an instrument Is payable to the order of two or more payees who are not partners, all must indorse unless the one indorsing has authority to indorse for the others.
 Sec. 42. Where an instrument Is drawn or indorsed to person as cashier" or other official ofiicer of 8 bank or corporation. 1t is deemed prima facie to be payable to the bank or corporation of which he Is such oficer and may be negotiated by either the indorsement of the bank or corpora tion, or the tndorsement of the of- ficer.
 Sec. 4s. Where the name of the payee or indorsee is wrongfuiiy designated Ur mtsspelled, he may indorse the in- strument as therein described. adding, if he think fit. his proper signature. Sec. 44. Where any person is under obligation to indorse in Q representa- tive capacity. he may indorse in such terms as to negative personal liabil- ity.
 Sec. t5. Except where an indorse- ment bears the date after the maturity of the instrument, every negotiation is deemed prima faoie to have been effected before the instrument was overdue.
 Sec. 4s, Except where the contrary appears. every indorsement Ia pre- sumed prima facie to have been made at the place where the instrument is dated.
 Sec. ~. An instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed Ior discharged by payment or other wise.
 sss. 4s. The owner may at any time strike out any indorsement which Is not necessary to his title. The inr dorser whose indorsemeint Is struck out. and all indorsers subsequent to him. are thereby relieved from liabil- ity on the instrument.
 Sec. 49. Where the holder of an in- strument payable to his order transfers 1t for value without indorsing 1t, the transfer vests in the transferee 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 determining whether the transferee Is a holder in due course, the negotia- ton takes effect as of the time when the indorsement is actually made.
 Sec. 50. Where an instrument is negotiated back to prior party. such party may, subject to the provisions tiate the same; but he Is not entitled to enforce payment thereof against any intervening party to whom he was personally liable.
 Ri9hts of Holder. Sec. S1. The holder of a 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 Ia complete and regular upon It's face. hecaTna the holder of it before 1t was overdue. and without mo- tice that it had been previously dis honored if such was the fact.
 8. That he took 1t in good faith and for value.
 l. That at the time it was negotiated to him he had no notice of any infirmi- ty fin the instrument or defect in the title of the person negotiating 1t. Sec. 5S. Where an instrument pay able on demand Is negotiated an unrea- sonable length of time after its issue the holder ia not deemed a holder in due course.
 Sec 54 Where the trRnsferee re- ceives notice ot any infrmity in the Instrument or defect in the title of the person negotiating the same before he has paid the full amount agreed to be maid therefor, he will be deemed holder in due course only to the extent of the amount heretofore paid by him.
 Sec. S6. The title of the person who negotiates an instrument Is defective within the meaning of this act when he obtained the instrument or any sig nature thereto, by fraud. duress, or force and fear. or other unlawful means, or for an illegal consideration. or when he neEotiates II In breach Of faith or under such circumstances as amounts to a fraud