The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-03-05
ARTICLE III.
NEGOTIATION.

ARTICLE III
NEGOTIATION.
Sec so What Constitutes Negotia.
ton An instrument is negotiated
when ii is transferred from one per-
son to another in such manner as to
constitute the transferee the holder
thereof Ii payable to bearer It is ne
gotiated by delivery Ii payable to
order, it is negotiated by the indorse-
ment Of the holder completed by de-
livery.
Sec. 81. Endorsement; How made.
The Endorsement must be written on
the instrument itself or upon a paper
attached thereto. The signature Of the
indorser without additional words. is
a sufficient Endorsement.
See. b. Endorsement Must be Of
Entire Instrument. The Endorsement
must be an Endorsement of the entire
instrument An Endorsement which
purports to transfer to the indorsee a
part only OF the amount payable, or
which purports to transfer the instru-
ment to two or more indorsees several
~, does not operate as negotiation
of the Instrument But where the in
strument has been paid in part. it
may be indorsed as to the residue
Sec 49, Kinds of Endorsement. An
Endorsement may be either special or
in blank and it may also be either
restrictive or qualified. or conditional
Sec. 81. Special Endorsement: in
dorsement in Blank i special indorse-
ment specifies the person to whom. or
to whose order, the instrument is TO
be payable; and the Endorsement Of
such indorsee is necessary to the fur
Their negotiation of the instrument
An Endorsement in blank specifies no
indorsee, and an instrument so in
dorsed is payable TO bearer and may
be negotiated by delivery
Sec. IS. Blank Endorsement. How
changed to Special Endorsement The
holder may convert a blank indorse-
ment into q special Endorsement by
writing over the signature Of the in
dorser in blank any contract consistent
with the character OF the Endorsement.
Sec. Sc When Endorsement Restric-
tive. An Endorsement is restrictive,
which either,
(D Prohibits the further negotja-
ton Of the instrument, or
60 Constitutes the indorsee The
agcn; of the indorser: or
49, Vests she lite in the iudorsee
in trUsa for or 20 the use Of some
ether rtrson.
Eat ne mere absence of words inn
plying power &C. negotiate does no.
ar4f rrga Nfsf-
Sec Sc. Effac' O. RESTRICTING In
dorscmcat: Rights Of Indorsee. A re-
strictiya Endorsement con re-s upon the
indorseo the right.
ID 10 receive payment of the in
strument,
CD To bring any action thereon
that tie irdcrsec could bring:
tS) To transfer hts rights as such
indorsee. where the form Of the III
dorsement authorizes him to do 50.
But all subsequent indofsees acquire
only the title OF the first indorsee nm
der the restrictive Endorsement
Sec. IS Qualified Endorsement A
qualified Endorsement constitutes the
indcrser a mere assiCnor OF the title
20 the instrument IL MAJ be- made
The words without recourse" or any
words 0f similar import Sucl an .n-
7oreement does not imp3ir the negoti.
able character OF fhe instrument
Ser. 80. Conditional Enforcement
Where ar Endorsement De- conditional
q narty required to pay the instrument
may disregard the condition. and
make payment % the indorsec O. his
fIansleres. whether The condition has
been fulfllcd OF not But any person
90 whom an instrument so Endorsed
o. negotiated will hold the came or
the proceeds thereof subject 20 the
rights Of the uerson indorsine condi.
fionailv
Sec. 40 Endorsement Of instrument
Pavahle TO Bearer. Where an instrl.
meut payable o. bearer. indCraed spe
cialiy. I'll may nevertheless DC further
negotiated bv delivery. h1t ire per
. son indorsinF specially is liable a. in
. dorEer 10 only such holders as make
title through his indorsement
Sec. 41. Endorsement Where Pay
able m Two cr More prrcns Where
/ an instrument Is payable o. the order
-f -ro cr more uarel- a. ildorsees