56: Requisites of indorsement

Requisites of indorsement.―(1) Negotiation by indorsement must be of the entire instrument. (2) An indorsement which purports to transfer to the indorsee only a part of the amount payable, or which purports to transfer the instrument to two or more indorsees severally, is not vaild as a negotiation of the instrument; but where such amount has been paid in part, a note to that effect may be indorsed on the instrument, which may then be indorsed for the balance.]

Effective date: 1881-12-09

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