Page:United States Statutes at Large Volume 30.djvu/829

 FIFTY-FIFTH CONGRESS. Sess. III. Ch. 47. 1899. 79] Sec. 53. That where an instrument payable on demand is negotiated d Wim M h<>1¤¤¤i¤ an unreasonable length of time after its issue,»the holder is not deemed °° °°m°' a holder in due course. Sec. 54. That where the transferee receives notice of any inhrmity Nm? !;*`<>*¤ f¤11 in the instrument or defect in the title of the person negotiating the mmm Pm ` 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 extent of the amount theretofore paid by him. SEO. 55. That the title of a person who negotiates an instrument is _ When tmc defectdefective within the meaning of this Act when' he obtained the instru- "°‘ ment, or any signature thereto, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates gt in breach of faith, or under such circumstances as amount to a fran . Sec. 56. That to constitute notice of an intirmity in the instrument, Doll:;';}. dg‘;¤°,fi°¤¤>¤ or defect in the title of the person negotiating the same, the person to » I °° ` 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. That a holder in due course holds the instrument free from duR*S'**¤ 0* ¤·>l·*¤r in any defect of title of prior parties and free from defenses available to °°°m°` prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties liable thereon. Sec. 58. That in the hands of any holder other than a holder in due 0  d*}¤¤i¤¤*¤ fc course a negotiable instrument is subject to the same defenses as if it ur ° °°°°°° were nonnegotiable. But a holder who derives his title through a ‘ holder in due course, and who is not himself a party to any fraud or illegality affecting the instrument, has all the rights of such former holder in respect of all parties prior to the latter. Sec. 59. That every holder is deemed prima facie to be a holder in mlgbsjwmd 1¤<>1¤ of 1>=¤·· Sec. 60. That the maker of a negotiable instrument by making it Maker. engages that he will pay it according to its tenor, and admits the existence of the payee and his then capacity to indorse. · Sec. 61. That the drawer by drawing the instrument admits the 1>r¤w¤r- existence of the payee and his then capacity to indorse, and engages that on due presentment the instrument will be accepted or paid, or both, according to its tenor, and that if it be dishonored, and the necessary proceedings on dishonor be duly taken, he will pay the amount thereof to the holder, or to any subsequent indorser who may be com-. pelled to pay it. But the drawer may insert in the instrument an express stipulation negativing or limiting his own liability to the holder. Sec. 62. That the acceptor by accepting the instrument engages that A¤¤¤r*·»r· he will pay it according to the tenor of his acceptance, and admits- —=»dmi¤¤i<>¤¤- First. The existence of the drawe1·, the genuineness of his signature, and his capacity and authority to draw the instrument, and, Second. The existence of the payee and his then capacity to indorse. Sec. 63. That a person placing his signature upon an instrument dcX_¤;;g¤dcggrr¤¤¤ otherwise than as a maker, drawer, or acceptor is deemed to be an ' indorser, unless he clearly indicates by appropriate words his intention to be bound in some other capacity. Sec. 64, That where a person, not otherwise a party to an instrument, ingjgjftv Df ¤‘¤¢¤*¤¤ places thereon his signature in blank before delivery, he is liable as ` indorser in accordance with the following rules: First. If the instrument is payable to the order of a third person, he is liable to the payee and to all subsequent parties. .