Page:United States Statutes at Large Volume 47 Part 1.djvu/1335

 72d CONGR ESS. SESS. II. CH. 128 . FEBR UARY 27, 1933 . SEC. 1419 . LIABnnTY of AGENT.-Where the ins trument contains or a person adds to his signature words indicating that he signs for or on behalf of a principal, or in a representative capacity, he is not liable on the instrument if he was duly authorized - but the mere addition of words describing him as an agent, or as filling a repre- sentative character, without disclosing his principal, does not exempt him from personal liability. SEC. 1420 . SIGNATURE BY " PROCURATION."-A signature by " proc- uration " operates as notice that the agent has but a limited author- ity to sign, and the principal is bound only in case the agent in so signing acted within the actual limits of his authority. SEC. 1421. INDORSEMENT BY CORPORATION OR INFANT .-The indorse- ment or assignment of the instrument by a corporation or by an infant p asses th e proper ty there in, notw ithstandi ng that from wan t of capacity the corporation or infant may incur no liability thereon. SEC. 1422 . FORGED SIGNATIIRE .-When a sig natu re is fo rged or made without the authority of the person whose signature it pu r- ports to be, it is wholly inoperative, and no right to retain the instru- ment, or to give a discharge therefor, or to enforce payment thereof against any party thereto, can be acquired through or under such signature, unless the party, against whom it is sought to enforce such right, is precluded from setting up the forgery or want of authority. CONSIDERATION SEC. 1423 . PRESUMPTION OF CONSIDERATION .-Every nego tiab le instrument is deemed prima facie to have been issued for a valuable consideration ; and every person whose signature appears thereon to have become a party thereto for value. SEC. 1424 . CONSIDERATION, WHAT coNsTI'ru'rES.-Value is any con- sideration sufficient to support a simple contract. An antecedent or preexisting debt constitutes value, and is deemed such whether the ins trument is payab le on de mand or at a fut ure time. SEC. 1425. HOLDER FOR VALUE .-Where value has at any time been given for the instrument, the holder is deemed a holder for value in respect to all parties who become such prior to that time. SEC. 1426. LIEN ON AN INSTRUMENT .-Where the holder has a lien on the instri 'dent, arising either from contract or by implication of law, he is deenr, a holder for value to the extent of his lien. SEC. 1427. EFFECT OF WANT OF CONSIDERATION :Absence or failure of consideration is matter of defense as against any person not a holder in due course ; and partial failure of consideration is a defense pro tanto, whether the failure is an ascertained and liquidated amount or otherwise. SEC. 1428. LIA BIL ITY OF ACCOMMODATION PARTY.-An accommoda- tion party is one who has signed the instrument as maker, drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person. Suc h a person is liable on the instrument to a holder for value, notwithstanding such holder at the time of taking the instrument knew him to be on ly an accommodation party. NEG OTI AT ION SEC. 1429. NEGOTIATION .-An instrument is ne got ia ted wh en it is transferred from one person to another in such manner as to con- stitute the transferee the holder thereof. If payable to bea rer it is negotiated by delivery ; if payable to order it is negotiated by the indors ement of the hol der comp leted by deliver y. 1311 Liability of agent. Signature by " proc- uration ." Indorsement by cor- poration or infant. Forged signature. Presumption of con- sideration . Wh at constitutes consideratio n. Holder for value. Lien on instr umen t. Want of considera- tion. Liability of accom- modation party . Negotiation.