FIFTY-FIFTH CONGRESS. Sess. III. On. 47. 1899. 7 89 Sec. 26. That where value has at any time been given for the instru- H<>ld¤r M *¤1¤¤, ment, the holder is deemed a holder, for value in respect to all parties 'mt °°"m°°°°' who became such prior to that time. Sec. 27. That where the holder has a lien on the instrument, arising _Where nsiasv ins either from contract or by implication of law, he is deemed a holder for 1‘°" °"_“’“’“'“°“‘· value to the extent of his lien. Sec. 28. That absence or failure of consideration is matter of defense new or want or 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. _ Sec. 29. That an accommodation party is one who hassigned the Liauniny or accominstrument as maker, drawer, acceptor, or indorser, without receiving "'°d"“°“ '“°°"°’· value therefor, and for the purpose of lending his name to some other g 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 him to be only an accommodation party. ARTICLE 111. NEGOTIATION. Ncgmamm Sec. 30. That an instrument is negotiated when it is transferred from —wb•¤·=¤¤~¤¢¤¢•¢· 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 holder completed by delivery. Sec. 31. That the indorsement must be written on the instrument Ivgivncmwt how itself or upon a paper attached thereto. The signature of the indorser, "'“d°' without additional words, is a sufficient indorsemeut. Sec. 32. That the indorsement must be an indorsement of the entire ;;¤u·3¤¤ be ¤f ¤¤t*¤• 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 iudorsees 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. . Sec. 33. That an indorsement may be either special or in blank; and ;k3¤¤¤ ¤f 1¤<i¤r¤·+ it may also be either restrictive or qualified or conditional. ° ' Sec. That a special indorsement specifies the person to whom or SP°°*¤li¤*l°¤°*¤¤¤*· 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 instru- —i¤ l>¤¤¤k- ment so indorsed is payable to bearer and may be negotiated by delivery. Sec. That the holder may convert a blank indorsement into a <>»¤»v»mw1mi_¤r special indorsement by writing over the signature of the indorser in ]{},'{.}Q§§,f_§‘,§§ "°°“‘ "" blank any contract consistent with the character of the indorsement. Sec. 36. That an indorsement is restrictive which either; R··¤m¤riv¤ m·1¤¤•- First. Prohibits the further negotiation of the instrument; or m""' Second. Constitutes the indorsee the agent of the indorser; or Third. 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. _ Sec. 37. That a restrictive indorsement confers upon the indorsee —riz¤t~¤¤¤f¤rr•=·i by- tbe right :· . , First. To receive payment of the instrument. Second. To bring any action thereon that the iudorser could bring. Third. 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. Sno, 38. That a qualified indorsemellli constitutes the indorser a mere Quslihod indorseassignor 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.
