Its drawer is the distinguished gentleman in the white house not far off (Mr. VAN BUREN); its indorser is the distinguished senator from South Carolina, here present.
But the frankness of the indorser has not left us in the same ignorance with respect to his opinion of the drawer.
You cheated me out of a thousand dollars, by giving me an indorseryou knew wasn't worth a dollar.
After the captain had parted with the money, he ascertained that the indorser was not worth a dollar.
The captain told him he would lend him the money if Hasbrook would give him a good indorser on the paper.
This does not mean that the indorserwill always pay, but only if the necessary steps are taken.
The commonest instance is the indorser's liability on a note which is not yet due when the indorser becomes bankrupt.
Hence, if an indorser is not notified, or if the instrument is not protested, if that is necessary, he is discharged.
When the drawer or indorser receives notice of a qualified acceptance, he must, within a reasonable time, express his dissent to the holder, or he will be deemed to have assented thereto.
The friend now may hold the person responsible who indorsed the check, because an indorser guarantees the payment of the instrument if the proper steps be taken to fix his liability.
Ordinarily, of course, we wish anindorser to assume this liability, but in this particular case there was no reason why this man should have indorsed the check in that way.
A surety may be distinguished from an indorser in that the undertaking of the surety is absolute, whereas that of the indorser is conditional.
Qualified indorsement (Law), an indorsement which modifies the liability of the indorser that would result from the general principles of law, but does not affect the negotiability of the instrument.
Without recourse (Commerce), words sometimes added to the indorsement of a negotiable instrument to protect the indorser from liability to the indorsee and subsequent holders.
A person placing his signature on a note otherwise than as maker, drawer or acceptor is deemed to be an indorser unless he clearly indicates his intention to be bound in some other way.
And where the name of a payee orindorser is wrongly designated or misspelled he may indorse the note as therein described, adding, if he thinks fit, his proper signature.
Thus unreasonable delay in presenting a check will discharge the indorser whether such delay is a cause of loss to him or not.
An accommodation party is one who has signed the note as maker, drawee, acceptor or indorser without receiving value therefor, and for the purpose of lending his name to some other person.
By a qualified indorsement the indorser becomes a mere assignor of the note, and is made so by adding to his signature the words "without recourse," or others of similar import.
When a negotiable note has been dishonored by non-acceptance or non-payment, notice of dishonor must be given to the drawer and to each indorser, and any drawer or indorser to whom such notice is not given is discharged.
The holder may convert a blank indorsement into a special one by writing over the signature of the indorser in blank any contract consistent with the character of the indorsement.
Finally, an indorser may avail himself of any defence existing between the holder and the maker or principal debtor.
This is evidently a just principle, for the holder should have no more rights against anindorser than he has against the maker.
If an indorser is compelled to pay a note, against whom has he a good claim?
If, therefore, the maker can interpose some just claim as a partial or complete defence the indorser should be permitted to avail himself of this claim.
For, as the contract requires the maker to pay at maturity, the indorser may presume, unless he has received a notice to the contrary, that the maker has paid the obligation.
In order to recover from an indorser it must be proven that a formal and proper demand for payment was made upon the maker.
In most states the indorser of a note cannot be held responsible for payment, unless the holder notifies him, within twenty-four hours after the note comes due, that the maker cannot or will not pay.
Remember the indorser of a note must be notified within twenty- four hours of the failure of the drawer to make good.
If an indorsed note changes hands, each indorser is responsible to all endorsers who follow him and also to the last holder of the note.
Each indorser is responsible to every indorserwho follows him.
If the indorser resides in the same town, he may be notified personally by the holder, or by a messenger sent to his dwelling-house, where notice may be given personally, or left in a way likely to bring it to his knowledge.
To hold the indorser of a note responsible, payment must be demanded of the maker on the last day of grace.
If payment is refused, how and when is the indorser to be notified?
If a person simply writes his name on the back, he is liable as indorser only.
A person who is not the holder of a bill, but who backs it with his signature, thereby incurs the liability of an indorser to a holder in due course (Sec.
If, for example, the holder only gives notice of dishonour to the last indorser, he could not sue the drawer unless the last indorser or some other party liable has duly sent notice to the drawer.
An indorser may by express term either restrict or charge his ordinary liability as stated above.
Any indorser who is compelled to pay the bill has the like remedy as the holder against any antecedent party (Sec.
If the bill is dishonoured the holder must notify promptly the fact of dishonour to any drawer and indorser he wishes to charge.
Sometimes the drawer or indorser has reason to expect that the bill may be dishonoured by the drawee.
How does a second indorserdiffer from a first indorser?
The implied liabilities of an indorser are discussed under a separate section.
It is not quite accurate to say that anindorser without recourse has no liability as an indorser.
Crumby's omitting words of negotiability from his indorsement is to limit his primary liability as anindorser to John Jones.
If subsequently indorsed in full, only those subsequent holders can hold the indorser in full, who can trace their title through him.
An indorser is usually defined to be one who writes his name on a negotiable instrument for the purpose of passing title.
One form of suretyship obligation, or obligations, to answer for the debt or default of another, is that of an indorser to a negotiable instrument.
What is the difference between an anomalous indorserand an indorser outside the chain of title.
Crumby becomes liable as indorser to John Jones only, and not to anyone to whom John Jones may indorse the paper.
Indorsement may be made in various forms, depending upon the purpose for which made, and the kind of liability the indorser is willing to undertake, or the kind or degree of liability which he wishes to avoid.
How can the first indorser be distinguished from the second?
To hold an indorser liable the holder upon its non-payment at maturity must give prompt notice of such non-payment to the indorser and that the holder looks to the indorser for payment.
A note or draft is indorsed in full when the indorser states, over his signature, the person to whose order the note or draft is to be paid.
When an indorser is thus compelled to pay he may hold prior parties, through whom he received the instrument, liable to him by sending them prompt notice of non-payment upon receiving such notice from the holder.
An indorsement in blank is simply the signature of the indorser written across the back of the note or draft.
If an indorser does not wish to guarantee the payment of a note or draft, he writes “Without recourse” over his name when indorsing it.
The above list will hopefully give you a few useful examples demonstrating the appropriate usage of "indorser" in a variety of sentences. We hope that you will now be able to make sentences using this word.
