412
THE HONGKONG GOVERNMENT GAZETTE, 9th MAY, 1885.
Presumption
of value and good faith.
Negotiation of bill.
Requisites of valid
indorsement.
Conditional indorsement
Indorsement
in blank and special
indorsement.
(2.) In particular the title of a person who negotiates a bill is defective within the meaning of this Ordinance when he obtained the bill, or the acceptance thereof, by fraud, duress, or force 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 derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.
30. (1.) Every party whose signature appears on a bill is primâ facie deemed to have become a party thereto for value.
(2.) Every holder of a bill is primâ facie deemed to be a 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 illegality, the burden of proof is shifted, unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.
Negotiation of Bills.
31. (1.) A bill is 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, and the transferee in addition acquires the right to have the indorsement of the transferor.
(5.) Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability.
32. An indorsement in order to operate as a negotiation must comply with the following conditions, namely:
(1.) It must be written on the bill itself and be signed by the indorser. The simple signature of the indorser on the bill, without additional words, is sufficient.
An indorsement written on an allonge, or on a "copy of a bill issued or negotiated in a country where “copies are recognised, is deemed to be written on the bill itself.
(2.) It must be an indorsement of the entire bill. A partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not operate as a negotiation of the bill.
(3.) Where a bill is payable to the order of two or more payees or indorsees who are not partners all must indorse, unless the one indorsing has authority to indorse for the others.
(4.) Where, in a bill payable to order, the payee or indorsee is wrongly designated, or his name is mis-spelt, he may indorse the bill as therein described, adding, if he think fit, his proper signature.
(5.) Where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved.
(6.) An indorsement may be made in blank or special. It may also contain terms making it restrictive.
33. Where a bill purports to be indorsed conditionally the condition may be disregarded by the payer, and payment to the indorsee is valid whether the condition has been fulfilled or not.
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.
412
THE HONGKONG GOVERNMENT GAZETTE, 9ru MAY, 1885.
Presumption
of value and good faith.
Negotiation of bill.
Requisites of * valid
indorsement.
Conditionat indorsement
Indorsement
in blank and special
indorsement.
(2.) In particular the title of a person who negotiates a bill is defective within the meaning of this Ordinance when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under snch circmustauces as amount to a frand.
(3.) A holder (whether for value or not), who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.
30. (1.) Every party whose signature appears on a bill is primâ facie deemed to have become a party thereto for value.
(2.) Every holder of a bill is primâ facie deemed to be a holder in due course; but if in an action on a bill it is.. admitted or proved that the acceptance, issue, or subse- quent negotiation of the bill is affected with fraud, duress, or force and fear, or illegality, the burden of proof is shifted, unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.
Negotiation of Bills.
31. (1.) A bill is 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 indorse- ment 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, and the transferee in addition acquires the right to have the indorsement of the transferor.
(5.) Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability.
32. An indorsement in order to operate as a negotiation must comply with the following conditions, namely:
(1.) It must be written on the bill itself and be signed by the indorser. The simple signature of the indorser on the bill, without additional words, is sufficient.
An indorsement written on an allonge, or on a "copy of a bill issued or negotiated in a country where “ copies are recognised, is deemed to be written on the bill itself.
"
(2.) It must be an indorsement of the entire bill. A partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not operate as a negotiation of the bill.
(3.) Where a bill is payable to the order of two or more payees or indorsees who are not partners all must indorse, unless the one indorsing has authority to indorse for the others.
(4.) Where, in a bill payable to order, the payee or in- dorsee is wrongly designated, or his name is mis-spelt, he may indorse the bill as therein described, adding, if he think fit, his proper signature.
(5.) Where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved. (6.) An indorsement may be made in blank or special. may also contain terms making it restrictive.
It
33. Where a bill purports to be indorsed conditionally the condition may be disregarded by the payer, and payment to the indorsee is valid whether the condition has been fulfilled or not.
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 payce 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 indorse- ment by writing above the indorser's signature a direction to pay the bill to or to the order of himself or some other person,
No comments yet.
Private notes are available after approval.