Sec. 42. Effect of instrument drawn or Sec. 48. Striking out indorsement. -
indorsed to a person as The holder may at any time strike
cashier. - Where an instrument is out any indorsement which is not
drawn or indorsed to a person as necessary to his title. The indorser
"cashier" or other fiscal officer of a whose indorsement is struck out,
bank or corporation, it is deemed and all indorsers subsequent to
prima facie to be payable to the him, are thereby relieved from
bank or corporation of which he is liability on the instrument.
such officer, and may be negotiated
by either the indorsement of the Sec. 49. Transfer without
bank or corporation or the indorsement; effect of. - Where the
indorsement of the officer. holder of an instrument payable to
his order transfers it for value
Sec. 43. Indorsement where name is without indorsing it, the transfer
misspelled, and so forth. - Where vests in the transferee such title as
the name of a payee or indorsee is the transferor had therein, and the
wrongly designated or misspelled, transferee acquires in addition, the
he may indorse the instrument as right to have the indorsement of the
therein described adding, if he transferor. But for the purpose of
thinks fit, his proper signature. determining whether the transferee
is a holder in due course, the
Sec. 44. Indorsement in negotiation takes effect as of the
representative capacity. - Where any time when the indorsement is
person is under obligation to actually made.
indorse in a representative
capacity, he may indorse in such
terms as to negative personal
liability. robles virtual law library
IV. RIGHTS OF THE HOLDER Sec. 55. When title defective. - The
title of a person who negotiates an
Sec. 51. Right of holder to sue; instrument is defective within the
payment. - The holder of a negotiable meaning of this Act when he
instrument may to sue thereon in obtained the instrument, or any
his own name; and payment to him signature thereto, by fraud, duress,
in due course discharges the or force and fear, or other unlawful
instrument. means, or for an illegal
consideration, or when he negotiates
Sec. 52. What constitutes a holder in it in breach of faith, or under such
due course. - A holder in due course circumstances as amount to a fraud.
is a holder who has taken the
instrument under the following Sec. 56. What constitutes notice of
conditions: defect. - To constitutes notice of an
(a) That it is complete and infirmity in the instrument or defect
regular upon its face; in the title of the person negotiating
the same, the person to whom it is
(b) That he became the negotiated must have had actual
holder of it before it was knowledge of the infirmity or defect,
overdue, and without notice or knowledge of such facts that his
that it has been previously action in taking the instrument
dishonored, if such was the amounted to bad faith.
fact;
V. LIABILITIES OF PARTIES
Sec. 150. Duty of holder where bill (d) The demand made and
not accepted. - Where a bill is duly the answer given, if any,
presented for acceptance and is not or the fact that the
accepted within the prescribed drawee or acceptor could
time, the person presenting it must not be found.
treat the bill as dishonored by
nonacceptance or he loses the right
of recourse against the drawer and
indorsers.
XII. PROTEST