Page:United States Statutes at Large Volume 31.djvu/1454

 1402 FIFTY-SIXTH CONGRESS. s-ass. 11. ou. B54. 1901. cO§§;€_‘;,§,*}€ri;; gg Sec. 1362. Nor HELD IN DUE coURsE, PAPER is SAME AS NoNNEGoasuormegotinble. T1ADLE.—In the hands of any holder other than a holder in due course, a negotiable instrument is subject to the same defenses as if it were nonnegotiable. But a holder who derives his title throu h_ 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 res act of all arties prior to the latter. - ,u‘§}jg§§g§';g°€§§‘d°’ Size. 1363. EVHAT PREsU111PT1oN WHEN TRANSFEREE’S TITLE sHowN ’DEFEcT1vE.—Every holder is deemed prima facie to be a holder in due course; but when it is shown that the title of any person who has negotiated the instrument was defective, the burden is on the holder to prove that he or some person under whom he claims acquired the title as a holder in due course. But the last-mentioned rule does not apply in favor of a part * who became bound on the instrument prior to the _ _ _ ac uisition of such defective title. L‘“b‘“‘Y°‘ m"·k°‘· Sec. 1364. LIABILITY OF MAKER.-··Th6 maker of a negotiable instrument, by making it, engages that he will ay it according to its tenor, _ _ _ and admits the existence of the payee and his then capacity to indorse. L‘“b‘1"" 0* d'“"""‘ Sec. 1365. L1AE1L1TY OF DRAwEE.—The drawer, by drawing the instrument, admits the existence of the payee and his then capacity to indorse, and engages that on due presentment the instrument will be accepted and aid, 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 compelled to pay it. But the drawer may insert ' in the instrument an express stipulation negativing or limiting his own _ _ V liability to the holder. - L‘“”‘h‘Y°“*°°€p‘°’· Sec. 1366. LIABILITY OF AooEPToR.—The acceptor, b accepting the instrument, engages that he will pay it according to the tenor of his _ _ acceptance, an admits- _ '“dm‘SS’°°S‘ First. The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument; and wh d d Second. The existence of the payee and his then capacity to indorse. mdO§¥?”°° wm Sec. 1367. IRREGULAR INDORSEDIENT.——A person placing his signature upon an instrument 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. V b$§§§‘,}§.§$_ “‘ bmk Sec. 1368. SIGNATURE IN BLANK BY sTRANcER.——Where a person not otherwise a party to an instrument places thereon his signature in blank before delivery he is liable as indorser in accordance with the followin rules: ·"’“l°S °*“°bil“Y· {First. If the instrument is payable to the order of a third person he is liable to the ayee and to all subsequent parties. Second. If tlile instrument is payable to the order of the maker or drawer, or is payable to bearer, he is liable to all parties subsequent ' to the maker or drawer. Third. If he signs for the accommodation of the payee he is liable to all parties subsequent to the payee. g0§?g{,¤g;¤§~§*f,l;${$€gg· Sec. 1369. N EGOTIATING BY DELIVERY OR QUALIFIED 1NDoRsE- " MENT.—Every person negotiating an instrument by delivery or by a qualified indorsement warrants-. First. That the instrument is genuine and in all respects what it purports to be. · Second. That he has a good title to it. Third. That all prior parties had capacity to contract. Fourth. That he has no knowledge of any fact which would impair _ the validity of the instrument or render it valueless. But when the negotiation is by delivery only the warranty extends in favor of no holder other than the immediate transferee. The provisions of subdivision three of this section do not apply to