the-ordinances-of-the-legislative-counci-1890v4 — Page 46

ORDINANCE No. 9 OF 1885. 1863


Bills of Exchange.


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

(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 Restrictive
indorsement.
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 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 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 Negotiation
of overdue or
negotiable until it has been (a ) restrictively indorsed or ( b ) discharged dishonoured
bill.
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 unreasonable length of time.
What is an unreasonable length of time for this purpose is a question of
fact .