Page:United States Statutes at Large Volume 31.djvu/1453

 F IFTY-SIXTH CONGRESS. Sess. II. Ch. 854. 1901. 1401 Sec. 1350. PRESUMPTION AS TO PLACE OF MAKING.-—Except where p,§gg{$,mn§’;QQ,g“$ ”° the contrary appears, every indorsement is presumed prima facie to ` have been made at the place where the instrument is dat-ed. Sec. 1351. NEGoTIARLE INSTRUMENT CONTINUES sUGH.—An instru- m§§§g§g§}gu€§§*;§3}· ment negotiable in its origin continues to be negotiable until it has ` been restrictively indorsed or discharged by payment or otherwise. Sec. 1352. STRIKING oUT INDORSEMENTS.—Th8 holder ma at any m§;Q}i¤g°¤*i¤d¤FS€· 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. 1353. TRANSFER wrrHoUT INnoRs1Ne.——Where the holder of an ,n'§{,*gg§g’ “’“h°“* instrument payable to his order transfers it for value without indors· ' ing it, the transfer vests in the transferee such title as the transferrer had therein, and the transferee acquires, in addition, the right to have the indorsement of the transferrer. But for the purpose of determining whether the transferee is a holder in due course, the negotiation takes eHect as of the time when the indorsement is actually made. Sec. 1354. TRANSFER BACK TO PRIOR PARTY.—-VVl]€1`8 an instrument pr'§(§§g;§*t; back °¤ is negotiated back to a prior party such party may, subject to the pro- ` visions 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. 1355. RIGHTS OF HOLDER.——The holder of a negotiable instru- Rights ofheiderment may Sue thereon in his own name, and payment to him in due course discharges the instrument. _ _ Sec. 1356. WH0 IS HOLDER IN DUE COURSE.—A holder in due dQQ*g§u,*§e_h°ld‘“ “‘ course is a holder who has taken the instrument under the following conditions: First. That it is complete and regular upon its face. Second. That he became the holder of it before it was over due, and without notice that it had been previously dishonored, if such was the fact. Third. That he took it in good faith and for value. Fourth. 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. Sec. 1357. Where an instrument payable on demand is negotiated ""h° “°‘· an unreasonable length of time after its issue, the holder is not deemed a holder in due course. _ _ Sec. 1358. \Vhere the transferee receives notice of any infirmity in ,,,,I}§,§§j’,“p,§$,€°’€ ml the instrument or defect in the title of the person negotiating the same before he has paid the full amount agreed to be paid therefor, he will be deemed a holder in due course only to the extent of the amount theretofore paid by him. - Sec. 1359. DEFEGTIVE T1TI.E.——The title of a person who negotiates D"f°°*“‘° “°l€· an instrument is defective within the meaning hereof when he obtained the instrument, or any signature thereto, by fraud, duress, or force and fear or other unlawful means, or for any illegal consideration, or when he negotiates it in breach of faith or under such circumstances as amount to a fraud. _ Sec. 1360. NOTIEE OF INFIRMITY.-—TO constitute notice of an in- ;QQ‘“*°°“S“°“""s“°‘ firmity in the instrument, or defect in the title of the person negotiating the same, the person to whom it is negotiated must have had actual knowledge of the infirmity or defect or knowledge of such facts that his action in taking the instrument amounted to bad faith. _ Sec. 1361. HOLDER IN DUE COURSE FREE FROM DEFENSES.—·A holder ,,§,°§§§,§,1§,§,‘;$,§§gf*$€ in due course holds the instrument frec from any defect of title of prior parties and free from defenses available to prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties liable thereon.