its face. But it may be worthy of consideration whether 3094. Any date may be inserted by the maker of Date. a negotiable instrument, whether past, present, or future, and the instrument is not invalidated by his death or incapacity at the time of the nominal date. NOTE.-Brewster vs. McCardel, 8 Wend., p. 478; 6. Certificates of deposit. NOTE.-Originally bills of exchange only were negotiable. Promissory notes were of at least doubtful negotiability prior to the statute of 3 & 4 Anne. Of course bank notes were included. The negotiability of the other classes mentioned has been the subject of controversy down to a very recent period, but it is well settled that checks (Keene vs. Beard, 8 C. B. [N. S.], p. 381; Eyre vs. Waller, 5 H. & N., p. 460), bonds (Brainerd vs. N. Y. & Harlem R. R., 25 N. Y., p. 496; Bank of Rome vs. Rome, 19 N. Y., p. 20; Gelpcke vs. Dubuque, 1 Wallace, U. S., p. 175), and certificates of deposit (Miller vs. Austen, 13 How. U. S., p. 218), are subject to all the rules of negotiable paper.-See, also, Minturn vs. Fisher, 4 Cal., p. 35; Mills vs. Barney, 22 Cal., p. 240, and cases cited therein. ARTICLE II. INTERPRETATION OF NEGOTIABLE INSTRUMENTS. SECTION 3099. Time and place of payment. 3100. Place of payment not specified. 3101. Instruments payable to a person or his order, how con strued. Time and place of payment. Place of payment not specified. Instruments a person or his order, how construed. SECTION 3102. Unindorsed note, when negotiable. 3103. Fictitious payee. 3104. Presumption of consideration. 3099. A negotiable instrument which does not specify the time of payment, is payable immediately. NOTE.-Holmes vs. West, 17 Cal., p. 623; Keyes vs. Fenstermaker, 24 Cal., p. 329; Lake Ontario R. R. vs. Mason, 16 N. Y., p. 451; Cornell vs. Moulton, 3 Den., p. 12; Peets vs. Bratt, 6 Barb., p. 662; Thompson vs. Ketcham, 8 Johns., p. 189; Jones vs. Brown, 11 Ohio St., p. 601. 3100. A negotiable instrument which does not specify a place of payment is payable wherever it is held at its maturity. NOTE.-See Haldane vs. Johnson, 8 Exch., p. 689. 3101. An instrument, otherwise negotiable in form, payable to payable to a person named, but with the words added, or to his order," or "to bearer," or words equivalent thereto, is in the former case payable to the written order of such person, and in the latter case payable to the bearer. note, when NOTE. This section is intended partly to avoid a difficulty in the general definition of negotiable paper, and partly to establish the right of the payor to require the indorsement of the payee-a right which is assumed in practice, but which has not been adjudged. Unindorsed 3102. A negotiable instrument, made payable to negotiable. the order of the maker, or of a fictitious person, if issued by the maker for a valid consideration, without indorsement, has the same effect against him and all other persons having notice of the facts as if payable to the bearer. Fictitious payeo. 3103. A negotiable instrument, made payable to the order of a person obviously fictitious, is payable to the bearer. NOTE.-Willets vs. Phoenix Bank, 2 Duer, p. 121. 3104. The signature of every drawer, acceptor, and indorser of a negotiable instrument is presumed tion of consideration. to have been made for a valuable consideration, before Presump NOTE. "The signature of every drawer, acceptor, ARTICLE III. INDORSEMENT. SECTION 3108. Indorsement, what. 3109. Agreement to indorse. 3110. Wher. may be made on separate paper. 3111. Kinds of indorsement. 3112. General indorsement, what. 3113. Special indorsement, what. 3114. General indorsement, how made special. 3115. Destruction of negotiability by indorser. 3116. Implied warranty of indorser. 3117. Indorser, when liable to payee. 3118. Indorsement without recourse. 3119. Same. 3120. Indorsee privy to contract. 3121. Rights of accommodation indorser. 42-vol. ii. Indorsement,what. Agreement to indorse. SECTION 3122. Effect of want of consideration. 3124. Rights of indorsee in due course. 3108. One who writes his name upon a negotiable instrument, otherwise than as a maker or acceptor, and delivers it, with his name thereon, to another person, is called an indorser, and his act is called indorsement. NOTE.-Both the signature and delivery are necessary to constitute an indorsement (Marston vs. Allen, 8 M. & W., p. 494; Brind vs. Hampshire, 1 id., p. 365; Belcher vs. Campbell, 8 Q. B., p. 1; Cox vs. Troy, 5 B. & Ald., p. 474), and both must be made or authorized by the same person. Thus a signature by A, and delivery by B, his executor, constitute no indorsement on the part of either A or B.-Bromage vs. Lloyd, 1 Exch., p. 31. By the common law an indorsement was essential to pass title to a bill drawn to order.-Cunliffe vs. Whitehead, 3 Bing. N. C., p. 828; Prevot vs. Abbott, 5 Taunt., p. 786. But that was because of the general rule prohibiting transfers of things in action. An assignment by mere delivery, without indorsement, transferred the equitable title (Franklin Bank vs. Raymond, 3 Wend., p. 69); and, under the Code of Civil Procedure, the equitable title is, in effect, the whole title, so that the holder under such circumstances can sue in his own name.-See, also, Savage vs. Bevier, 12 How. Pr., p. 166; Hastings vs. McKinley, 1 E. D. Smith, p. 273; affirmed, 4 Seld. Notes, p. 19; Marine Bank vs. Vail, 6 Bosw., p. 421; see Palmer vs. Tripp, 8 Cal., p. 95. 3109. One who agrees to indorse a negotiable instrument is bound to write his signature upon the back of the instrument, if there is sufficient space thereon for that purpose. NOTE. This provision is new. Though an indorsement upon the face of the instrument is valid (Young vs. Glover, 3 Jur. [N. S.], p. 637, it is unusual, and would excite suspicion. A creditor, who agrees to accept an indorsed note in satisfaction, ought not to be required to accept such an indorsement. be made on paper. 3110. When there is not room for a signature When may upon the back of a negotiable instrument, a signature separate equivalent to an indorsement thereof may be made upon a paper annexed thereto. NOTE.-Story on Notes, Sec. 121; Folger vs. Chase, 18 Pick., p. 63. Kinds of 3111. An indorsement may be general or special. indorse ment. 3112. A general indorsement is one by which no General indorsee is named. indorsement, what. 3113. A special indorsement specifies the in- Special dorsee. indorsement, what. indorse made 3114. A negotiable instrument bearing a general General indorsement cannot be afterwards specially indorsed; ment, how but any lawful holder may turn a general indorsement special. into a special one, by writing above it a direction for payment to a particular person. NOTE.-Watervliet Bank vs. White, 1 Denio, p. tion of 3115. A special indorsement may, by express Destrucwords for that purpose, but not otherwise, be so made negotiaas to render the instrument not negotiable. NOTE.-Leavitt vs. Putnam, 3 N. Y., p. 494; Story on Notes, Sec. 139. bility by indorser. warranty .3116. Every indorser of a negotiable instrument Implied warrants to every subsequent holder thereof, who is of indorser. not liable thereon to him: 1. That it is in all respects what it purports to be; 2. That he has a good title to it; 3. That the signatures of all prior parties are binding upon them; 4. That if the instrument is dishonored, the indorser will, upon notice thereof duly given to him, or without notice, where it is excused by law, pay so much |