the-ordinances-of-the-legislative-counci-1890v2 — Page 141

BILLS OF EXCHANGE . [ 9 OF 1885. ] 731

35. ( 1. ) An indorsement is restrictive which prohibits the Restrictive
further negotiation of the bill or which expresses that it is a indorsement.
mere anthority 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 indorsee the right
to receive payment of the bill and to sue any party thereto tbat
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 indorsces 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 dishono
af overdue
uredor
( 6 ) discharged by payment or otherwise. bill.

( 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 foran
udreasonable length of time. What is an unreasonable length
of time for this purpose is a question of fact.
( 1. ) Except where an indorsement bears date after the
maturity of the bill, every negotiation is primâ facie deemed to
have been effected before the bill was overdue.
( 5. ) Where a bill which is not overdue has been dishonoured
any person who takes it with notice of the dishonour takes it
subject to any defect of title attaching thereto at the time of
dishonour, but nothing in this subsection shall affect the rights
of a holder in due course.
37. Where a bill is negotiated back to the drawer, or to a Segotiation
prior indorser or to the acceptor, such party may, subject to of bill toalready
the provisions of this ordinance, re-issue and further negotiate party
liable thereon .
the bill , but he is not entitled to enforce payment of the bill
against any intervening party to whom he was previously liable.
38. The rights and powers of the holder of a bill are as Rights of the
follows : holder.

( 1. ) He may sue on the bill in his own name :