BILLS OF EXCHANGE.
No. 3 of 1885.
293
(6) an indorsement may be made in blank or special. It may also contain terms making it restrictive.
indorsement.
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.
in blank and special indorsement.
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 is 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 indorsee 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 authorises 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 it has been—
(a) restrictively indorsed; or
(b) discharged by payment or otherwise.
of overdue or dishonoured bill.
BILLS OF EXCHANGE.
No. 3 of 1885.
293
(6) an indorsement may be made in blank or special. It may also contain terms making it restrictive.
indorsement.
33. Where a bill purports to be indorsed conditionally, Conditional 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, indorsement 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.
in blank and special indorsement.
35. (1) An indorsement is restrictive which prohibits Restrictive the further negotiation of the bill or which expresses that it indorsement. 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 is indorsed "Pay D only," or "Pay D for the account of X," or "Pay D or order for collection."
to
(2) A restrictive indorsement gives the indorsee 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 authorises 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 Negotiation continues to be negotiable until it has been--
(a) restrictively indorsed; or
(b) discharged by payment or otherwise.
of overdue or dishonoured bill.
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