Page:United States Statutes at Large Volume 47 Part 1.djvu/1336

 1312 Indorsement. SEC. 1430. INDORSEMENT.r-The endorsement must be written on the instrument itself or upon a paper attached thereto. The signature of the indorser, without additional words, is a sufficient indorsement. Indorsement of en• SEC. 1431. INDORSEMENT OF ENTIRE INSTRUMENT .-The indorse- tire instrument. ment m ust be a n indors ement of the ent ire inst rument. An indorse- inent which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the instrument to two or more in dorsees severall y, does not oper ate as a negotia tion of the instrument. But where the instrument has been paid in part, it may be indorsed as to the residue. Kinds of indorse. SEC. 1432. KINDS OF INDORSEMENT.-An indorsement may be went. either special or in blank ; and it may also be either restrictive or qualified, or conditional. Special . SEC. 1433. SPECIAL INDORSEMENT.-A special indorsement specifies the person to whom, or to whose order, the instrument is to be pay- able ; and the indorsement of such indorsee is necessary to the further negotiation of the instrument. An indorsement in blank specifies no indorsee, and an instrument so indorsed is payable to bearer and may be negotiated by delivery. SEC. 1434. BLANK INDORSEMENT, HOW CHANGED TO SPECIAL INDORSE- MENT .-The holder may convert a blank indorsement into a special indorsement by writing over the signature of the indorser in blank any contract consistent with the character of the indorsement. Restrictive . SEC. 1435 . INDORSEMENT RESTRICTIVE :An indorsement is restric- tive, which either- 1 Prohibits the further negotiation of the instrument ; or 2 Constitutes the indorsee the agent of the indorser ; or 3 Vests the title in the indorsee in trust for or to the use of some other person. But the mere absence of words implying power to negotiate does not make an indorsement restrictive. Right s confe rred. SEC. 1436. RIGHTS CONFERRED .-A restrictive indorsement confers upon the indorsee the right- (1) To receive payment of the instrument ; (2) To bring any action thereon that the indorser could bring : (3) To transfer his rights as such indorsee, where the form of the indorsement authorizes him to do so. Bu t all su bsequent indorse es acqui re only the titl e of the first indorsee under the restrictive indorsement. Qualified. SEC. 1437. QUALIFIED INDORSEMENT .-A qualified indorsement con- stitutes the indorser a mere assignor of the title to the instrument. It may be made by adding to the indor ser's signa ture the w ords " without recourse " or any words of si milar import. Such an indorsement does not impair the neg otiab le cha racte r of the instrument. Conditional. SEC. 1438 . CONDITIONAL INDORSEMENT .-Where an endorsement is conditional, a party required to pay the instrument may disregard the condition, and make payment to the indorsee or his transferee, whether the con dition i has been fulfill ed or not. But any person to whom an instrument so indorsed is negotiated will hold the same, or the proceeds thereof, subject to the rights of the person indorsing conditionally. Payable to bearer. SEC. 1439. PAYABLE TO BEARER .-Where an instr ument, payable to bearer, is indor sed spec ially it may nev ertheless be furt her nego - tiated by delivery ; but the person endorsing specially is liable as indorser to only such holders as make title through his indorsement. Payable to two or SEC. 1440 . PAYABLE TO TWO OR MORE PERSONS -Where an instru- more persons. ment is payable to the order of two or more payees or indorsees who Blank ; how changed to special . 72d CONGRESS ., SESS. II. CH. 128. FEBR UAR Y 27, 1933.