Page:United States Statutes at Large Volume 76A.djvu/340

–244– -244§ 4346. Indorsement in blank; change to special indorsement 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. § 4347. Restrictive indorsement An indorsement is restrictive, 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. § 4348. Restrictive indorsement; effect; rights of indorsee 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. But all subsequent indorsees acquire only the title of the first indorsee under the restrictive indorsement. § 4349. Qualified indorsement A qualified indorsement constitutes the indorser a mere assignor of the title to the instrument. It may be made by adding to the indorser's signature the words "without recourse" or any words of similar import. Such an indorsement does not impair the negotiable character of the instrument. § 4350. Conditional indorsement Where an indorsement is conditional, a party required to pay the instrument may disregard the condition, and make payment to the indorsee or his transferee, whether the condition has been fulfilled 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. § 4351. Indorsement of instrument payable to bearer Where an instrument, payable to bearer, is indorsed specially it may nevertheless be further negotiated by delivery; but the person indorsing specially is liable a^ indorser to only such holders as make title through his indorsement. § 4352. Indorsement of instrument payable to two or more persons Where an instrument is payable to the order of two or more payees or indorsees who are not partners, all must indorse, unless the one indorsing has authority to indorse for the others. § 4353. Instrument drawn or indorsed to "cashier" Where an instrument is drawn or indorsed to a person as "cashier" or otherfiscalofficer of a bank or corporation, it is deemed prima facie to be payable to the bank or corporation of which he is such officer, and may be negotiated by either the indorsement of the bank or corporation or the indorsement of the officer. § 4354. Indorsement where name wrongly designated or misspelled Where the name of a payee or indorsee is wrongly designated or misspelled, he may indorse the instrument as therein described, adding, if he thinl^ fit, hiJ proper signature.

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