700

Dresun.p tien
of value and
goed faith,

Negeth
of lull.

Ch. 31. No. 5.] Bills of Exchange.

overdue, and without notice that it had been previously
dishonoured, if such was the fact ;

(6) that he took the bill in good faith and for value,
and that at the time the bill was negotiated to him he
had no notice of any defect in the title of the person
who negotiated it.

(2) In particular the title of a person who negotiate.
a bill is defective within the meaning of this Ordinance when
he obtained the bill, or the acceptance thereof, by fraud,
duress, or foree and fear, or other unlawful means, or for an
illegal consideration, or when he negotiates it in ‘breach of
faith, or under such circumstances as amount to a fraud.

(3) A holder (whether for value or not) who derive.
his title to a bill through a holder in due course, and who is
not himself a party to any fraud or iWlegality affecting it,
has all the rights of that holder in due course as regar ds the
acceptor and all parties to the bill prior to that holder.

30. (1) Every party whose signature appears on a bill is
prima facie deemed to have become a party thereto for
value.

(2) every holder of a bill is primd facie deemed to be
holder in due course, but if in an action on a bill it is
admitted or proved that the acceptance, issue, or subsequent
negotiation of the bill is affected with fraud, duress, or
force and fear, or egality, the burden of pr oof is shifted,
unless and until the holder proves that, subsequent to the
alleged fraud or Wlegality, value has in good faith been given
for the bill,

Negotiation of bills.

31. (1) A billis negotiated when it is transferred from one
person to another in such a manner as to constitute the
transferee the holder of the bill.

(2) A bill payable to bearer is negotiated by delivery.
(3) A bill payable to order is negotiated by the
indorsement of the holder completed by delivery.

(4) Where the holder of a bill payable to his order
transfers it for value without indorsing it, the transfer gives
the transferee such title as the transferor had in the bill,