1312 Indorsement . SEC . 1430. INDORSEMENT.r-The endorsement must be written on the instrument itself or upon a paper attached thereto . The signature of the indorser, without additional words, is a sufficient indorsement . Indorsement of en• SEC. 1431 . INDORSEMENT OF ENTIRE INSTRUMENT .-The indorse- tire instrument . ment m ust be a n indors ement of the ent ire inst rument . An indorse- inent 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 in dorsees severall y, does not oper ate as a negotia tion of the instrument . But where the instrument has been paid in part, it may be indorsed as to the residue . Kinds of indorse . SEC. 1432 . KINDS OF INDORSEMENT.-An indorsement may be went.
either special or in blank ; and it may also be either restrictive or qualified, or conditional . Special .
SEC. 1433 . SPECIAL INDORSEMENT.-A special indorsement specifies the person to whom, or to whose order, the instrument is to be pay- able ; and the indorsement of such indorsee is necessary to the further negotiation of the instrument . An indorsement in blank specifies no indorsee, and an instrument so indorsed is payable to bearer and may be negotiated by delivery . SEC. 1434. BLANK INDORSEMENT, HOW CHANGED TO SPECIAL INDORSE- MENT .-The holder may convert a blank indorsement into a special indorsement by writing over the signature of the indorser in blank any contract consistent with the character of the indorsement . Restrictive .
SEC . 1435 . INDORSEMENT RESTRICTIVE :An indorsement is restric- tive, which either- 1 Prohibits the further negotiation of the instrument ; or 2 Constitutes the indorsee the agent of the indorser ; or 3 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 . Right s confe rred .
SEC. 1436. RIGHTS CONFERRED .-A restrictive indorsement confers upon the indorsee the right- (1) To receive payment of the instrument ; (2) To bring any action thereon that the indorser could bring : (3) To transfer his rights as such indorsee, where the form of the indorsement authorizes him to do so . Bu t all su bsequent indorse es acqui re only the titl e of the first indorsee under the restrictive indorsement . Qualified. SEC. 1437 . QUALIFIED INDORSEMENT .-A qualified indorsement con- stitutes the indorser a mere assignor of the title to the instrument . It may be made by adding to the indor ser's signa ture the w ords " without recourse " or any words of si milar import . Such an indorsement does not impair the neg otiab le cha racte r of the instrument . Conditional . SEC . 1438 . CONDITIONAL INDORSEMENT .-Where an endorsement is conditional, a party required to pay the instrument may disregard the condition, and make payment to the indorsee or his transferee, whether the con dition i has been fulfill ed or not . But any person to whom an instrument so indorsed is negotiated will hold the same, or the proceeds thereof, subject to the rights of the person indorsing conditionally . Payable to bearer . SEC. 1439 . PAYABLE TO BEARER .-Where an instr ument, payable to bearer, is indor sed spec ially it may nev ertheless be furt her nego - tiated by delivery ; but the person endorsing specially is liable as indorser to only such holders as make title through his indorsement . Payable to two or SEC . 1440 . PAYABLE TO TWO OR MORE PERSONS -Where an instru- more persons.
ment is payable to the order of two or more payees or indorsees who Blank ; how changed to special . 72d CONGRESS ., SESS . II. CH. 128. FEBR UAR Y 27, 1933 .
