Page:United States Statutes at Large Volume 76A.djvu/339

–243– -243§ 4332. Value defined Value is any consideration sufficient to support a simple contract. An antecedent or pre-existing debt constitutes value, and is deemed such whether the instrument is payable on demand or at a future time. § 4333. 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. § 4334. Lien holder as holder for value Where the holder has a lien on the instrument, arising either from contract or by implication of law, he is deemed a holder for value to the extent of his lien. § 4335. Want of consideration; e£fect 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. § 4336. Liability of accommodation party An accommodation 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. Such a person is liable on the instrument to a holder for value, notwithstanding such holder at the time of taking the instrument knew hhn to be only an accommodation party. Article C—Negotiation § 4341. Negotiation defined An instrument is negotiated when it is transferred from one person to another in such manner as to constitute the transferee the holder thereof. If payable to bearer it is negotiated by delivery; if payable to order it is negotiated by the indorsement of the liolder completed by delivery. § 4342. Indorsement; method The indorsement 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. § 4343. Indorsement must be of entire instrument The indorsement must be an indorsement of the entire instrument. An indorsement 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 indorsees severally, does not operate as a negotiation of the instrument. But where the instrument has been paid in part, it may be indorsed as to the residue. § 4344. Kinds of indorsement An indorsement may be either special or in blank; and it may also be either restrictive or qualified, or conditional. § 4345. Special indorsement; indorsement in blank A special indorsement specifies the person to whom, or to whose order, the instrument is to be payable; 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.

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