Sec. 43. Indorsement where name is misspelled, and so forth. – Where the name of a payee or indorsee is wrongly designated or misspelled, he may indorse the instrument as therein described adding, if he thinks fit, his proper signature. Sec. 44. Indorsement in representative capacity. – Where any person is under obligation to indorse in a representative capacity, he may indorse in such terms as to negative personal liability. Sec. 45. Time of indorsement; presumption. – Except where an indorsement bears date after the maturity of the instrument, every negotiation is deemed prima facie to have been effected before the instrument was overdue. Sec. 46. Place of indorsement; presumption. – Except where the contrary appears, every indorsement is presumed prima facie to have been made at the place where the instrument is dated. Sec. 47. Continuation of negotiable character. – An instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed or discharged by payment or otherwise. Sec. 48. Striking out indorsement. – The holder may at any time strike out any indorsement which is not necessary to his title. The indorser whose indorsement is struck out, and all indorsers subsequent to him, are thereby relieved from liability on the instrument. Sec. 49. Transfer without indorsement; effect of. – Where the holder of an instrument payable to his order transfers it for value without indorsing it, the transfer vests in the transferee such title as the transferor had therein, and the transferee acquires in addition, the right to have the indorsement of the transferor. But for the purpose of determining whether the transferee is a holder in due course, the negotiation takes effect as of the time when the indorsement is actually made. Sec. 50. When prior party may negotiate instrument. – Where an instrument is negotiated back to a prior party, such party may, subject to the provisions of this Act, reissue and further negotiable the same. But he is not entitled to enforce payment thereof against any intervening party to whom he was personally liable. IV. RIGHTS OF THE HOLDER Sec. 51. Right of holder to sue; payment. – The holder of a negotiable instrument may to sue thereon in his own name; and payment to him in due course discharges the instrument. Sec. 52. What constitutes a holder in due course. – A holder in due course is a holder who has taken the instrument under the following conditions: (a) That it is complete and regular upon its face; (b) That he became the holder of it before it was overdue, and without notice that it has been previously dishonored, if such was the fact; (c) That he took it in good faith and for value;
(d) That at the time it was negotiated to him, he had no notice of any infirmity in the instrument or defect in the title of the person negotiating it.
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- Fall '15
- MR AGUSTIN
- History, Negotiable instrument, Sec.