768

Indoursement
in blank and
special

indorsement.

Restrictive
indorsement.

Negotiation
of overdue
or dis-
honoured
bill.

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

 

34. (1) An indorsement in blank specifies no indorsee,
and a bill so indorsed becomes payable to bearer.

(2) A special indorsement specifies the person to
whom, or to whose order, the bill is to be payable.

(3) The provisions of this Ordinance relating to a
payee apply with the necessary modifications to an indorsee
under a special indorsement.

(4) When a bill has been indorsed in blank, any
holder may convert the blank indorsement into a special
indorsement by writing above the indorser’s signature a
direction to pay the bill to or to the order of himself or some
other person.

35. (1) An indorsement is restrictive which prohibits the
further negotiation of the bill or which expresses that it is
a mere authority to deal with the bill as thereby directed
and not a transfer of the ownership thereof, as, for example,
if a bill be indorsed “ Pay D. only,” or “ Pay D. for the
account of X.,”’ or ‘‘ Pay D. or order for collection.”

(2) A restrictive indorsement gives the indorsce the
right to receive payment of the bill and to sue any party
thereto that his indorser could have sued, but gives him no
power to transfer his rights as indorsee unless it expressly
authorise him to do so.

(3) Where a restrictive indorsement authorises further
transfer, all subsequent indorsees take the bill with the same
rights and subject to the same liabilities as the first indorsee
under the restrictive indorsement.

36. (1) Where a bill is negotiable in its origin, it continues
to be negotiable until 1t has been (a) restrictively indorsed
or (0) discharged by payment or otherwise.

(2) Where an overdue bill is negotiated, it can only be
negotiated subject to any defect of title affecting it at its
maturity, and thenceforward no person who takes it can
acquire or give a better title than that which the person
from whom he took it had.

(3) A bill payable on demand is deemed to be overdue
within the meaning and for the purposes of this section, when
it appears on the face of it to have been in circulation for an