Page:United States Statutes at Large Volume 47 Part 1.djvu/1339

 72d CONGRESS. SESS. II. CH. 128 . FEBRUARY 27, 1933 . party who became bound on the instrument prior to the acquisitioi : of such defective title. CRoss Rrras recss Notice before full amount paid, see section 1453. Rights of holder in due course, see section 1456. What constitutes a holder in due course, see section 1451. When person not deemed a holder in due course, see section 1452. LIABILITIES OF PARTIES SEC. 1459. LIABILITY OF MAKER .-The maker of a negotiable instru- ment by making it engages that lie will pay it according to its tenor, and admits the existence of the payee and his then capacity to indorse. SEC. 1460 . LIABILITY OF DRAWER.-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 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 ho lder, or to any subse- que nt i ndor ser who may be compelled to pay it. But the drawer may insert in the instrument an express stipulation negativing or limiting his own liability to the holder. SEC. 1461. LIABILITY OF ACCEPTOR .-The acceptor by accepting the instrument engages that he will pay it according to the tenor of his acce ptanc e ; and admits- (1) The existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the instrument ; and (2) The existence of the payee and his then capacity to indorse. SEC. 1462. PERSON DEEMED INDORSER .-A person placing his signa- Person deemed to- e tur e u pon an ins tru men t otherwise tha n as maker, drawer, or dorser accepto r, is de emed to b e an ind orser, u nless he clearly indicat es by ap~propriate words his intention to be bound in some other capacity. SEC. 1463 . LIABILITY OF IRREGULAR INDORSER .-Where a person, not indo e rity of irre gula r otherwise a party to an instrument, places thereon his signature in blank before delivery, he is liable as indorser, in accordance with the fol lowing r ules (1) If the instrument is payable to the order of a third person, he is liable to the payee and to all subsequent parties. (2) If the 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. (3) If he signs for the accommodation of the payee, he is liable to all parties subsequent to the payee. SE C. 1464. WARRANTY WHEN NEGOTIATION BY DELIVERY, ETC.- ... arranty when ne . Every person negotiating an instrument by delivery or by a qualified eicfatfon by delivery, indorsement, warrants- (1) That the instrument is genuine and in all respects what it purports to be ; 2)Thathehasagoodtitletoit; 3) That al l prior parties had capa city to contract ; 4) Th at he-has no knowledge of any fa ct 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 persons negotiating public or corporation securities, other than bills and notes, Ante, p. 1314. Ante, p.1313 . Ante, p. 1314. 1315 Liabilities of parties . Of maker. Of drawer . Of acceptor.