Indorsers

are liable to each other in the order in which their indorsements appear on the instrument (unle they have made a specific agreement to the contrary). In other words, each indorser is liable for the full amount of the instrument to any of the indorsers whose names are written under (following) his; but he is not liable to any indorser whose name is written above (preceding) his. The holder may proceed against any of the indorsers regardle of their liability as between themselves. A note or other negotiable instrument may be indorsed in nine different ways, each imposing a different liability on the - indorser. An indorsement in full (1), another name for which is special indorsement, specifies by name the person in whose favor it is made and to whom or to whose order the payment is to be made. An indorsement in blank (2) consists merely of the name of the indorser written on the back of the instrument. The receiver of a negotiable instrument indorsed in blank or any bona fide holder of it may write over it an indorsement in full to himself or to another or any contract consistent with the character of an indorsement, but he cannot enlarge the liability of the indorser in blank by writing over it a waiver of any of his rights, such as demand and notice. An absolute indorsement (3) binds the indorser to pay on no other condition than the failure of the prior parties to do so and on due notice to him of their failure. A conditional indorsement (4) contains some condition to the indorser’s liability.; An indorsement may be so worded as to restrict the further negotiability of the instrument; it is then a restrictive indorsement (5). The words “For collection” written on a note render the indorsement restrictive. The indorser in such a case may hold that he is not the-owner of the note and did not mean to give a title to it or to its proceeds when collected; such an indorsement merely makes the indorsee agent = for the indorser in collecting the note.: A qualified indorsement or indorsement without recourse (6) consists in writing the words “Without recourse to” or “At: the indorsee’s own risk” on the back of the note; the indorser is then a mere a ignor of the title to the note and is relieved of responsibility for its payment. A joint indorsement (7) is an indorsement on a promi ory note that is payable to two or more persons who are not partners. 267