7/24/2019 Misc. Rules on Indorsement

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Misc. Rules on Indorsement

Indorsement of an instrument payable to

bearer (Sec.40, NIL)o May still be negotiation by deliery!

but t"e one ma#ing t"e indorsement is

liable as indorser

$"ere t"e instrument is payable to t"e

order of t%o or more persons %"o are notpartners (Sec. 4&, NIL)o 'll must indorse unless t"e one

indorsing "as aut"ority to indorse for

t"e ot"er(s)

Instrument is dra%n or indorsed to a

person as cas"ierscal o*cer (Sec. 4+,

NIL)o resumption instrument is payable to

ban#corporation! negotiated by

ban#corporation t"roug" its o*cer

(% aut"ority)

$"ere name of payee or indorsee is

misspelled (Sec. 4-, NIL)o Suc" payee or indorsee can indorse

instrument using t"e %rong spelling as

t"erein described and adding "is

correct signature, if t"ere need be

Indorsement in representatie capacity

(Sec. 44, NIL)o Indorse in representatie capacity!

adopt suc" terms as to negatie

personal liability (i.e. for and be"alf

of/)! disclose principal

resumption as to time of indorsement

(Sec. 4, NIL)o 1ery negotiation is considered prima

facie to "ae been e2ected before

instrument "as become oerdue

lace of indorsement (Sec. 43, NIL)

o resumed to be prima facie to "aebeen made at t"e place %"ere t"e

instrument is dated

Stri#ing out of indorsement (Sec. 4, NIL)

o 5older could at any time remoe

indrosement so long as indrosement

not necessary for "older6s titleo 12ect7 disc"arges liability of t"e

person %"ose indrosement %as

stric#en out, as %ell as liability of

subse8uent indorsers

9ransfer of an order instrument %it"outindorsement :%"en suc" indrosement is

necessary; (Sec. 4