28A: Transferor by delivery and transferee

Transferor by delivery and transferee.—(1) Where the holder of a negotiable instrument payable to bearer negotiates it by delivery without indorsing it, he is called a “transferor by delivery”. (2) A transferor by delivery is not liable on the instrument. (3) A transferor by delivery who negotiates a negotiable instrument thereby warrants to his immediate tarnsferee, being a holder for consideration, that the instrument is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any defect which renders it valueless.]

Effective date: 1881-12-09

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