Page:United States Statutes at Large Volume 76A.djvu/341

–245– -245§ 4355. Indorsement in representative capacity Where any person is under obligation to indorse in a representative capacity, he may indorse in such terms as to negative personal liability. § 4356. Time of indorsement; presumption Except where an indorsement bears date after the maturity of the instrument, every negotiation is deemed prima facie to have been effected before the instrument was overdue. § 4357. Place of indorsement; presumption Except where the contrary appears, every indorsement is presumed prima facie to have been made at the place where the instrument is dated. § 4358. Continuation of negotiable character An instrument negotiable in its origin continues to be negotiable until it has been restrictively indorsed or discharged by payment or otherwise. § 4359. Striking out indorsement The holder may at any time strike out any indorsement which is not necessary to his title. The indorser whose indorsement is struck out, and all indorsers subsequent to him, are thereby relieved from liability on the instrument. § 4360. Transfer without indorsement Where the holder of an instrument payable to his order transfers it for value without indorsing it, the transfer vests in the transferee such title as the transferor had therein, and the transferee acquires, in addition, the right to have the indorsement of the transferor. But for the purpose of determining whether the transferee is a holder in due course, the negotiation takes effect as of the time when the indorsement is actually made. § 4361. Renegotiation by prior party Where an instrument is negotiated back to a prior party that party may, subject to the provisions of this chapter, reissue and further negotiate the same. But he is not entitled to enforce payment thereof against any intervening party to whom he was personally liable. Article D—Rights of Holder § 4371. Right of holder to s u e; payment The holder of a negotiable instrument may sue thereon in his own name and payment to him in due course discharges the instrument. § 4372. Holder in due course defined A holder in due course is a holder who has taken the instrument under the following conditions: (1) that it IS complete and regular upon its face; (2) that he became the liolder of it before it was overdue, and without notice that it had been previously dishonored, if such was the fact; (3) that he took it in good faith and for value; (4) that at the time it was negotiated to him he had no notice of any infirmity in the instrument or defect in the title of the person negotiating it. § 4373. Holder not in due course Where an instrument payable on demand is negotiated an unreasonable length of time after its issue, the holder is not deemed a holder in due course.

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