SECTION 14. Blanks; when may be filled. SECTION 65.

Warranty where negotiation by

delivery and so forth.
/Where the instrument is wanting in any material
particular, the person in possession thereof has a Every person negotiating an instrument by delivery
prima facie authority to complete it by filling up the or by a qualified indorsement warrants:
blanks therein./
a) That the instrument is genuine and in all
/and a signature on a blank paper delivered by the respect what it purports to be;
person making the signature in order that the b) That he has a good title to it;
paper may be converted into a negotiable c) That all prior parties had capacity to
instrument operates as a prima facie authority to contract;
fill it up as such for any amount./ d) That he has no knowledge of any fact
which would impair the validity of the
/in order, however, that any such instrument when
instrument or render it valueless.
completed may be enforced against any person
who became a party thereto prior to its completion, But when the negotiation is by delivery only, the
it must be filled up strictly in accordance with the warranty extends in favor of no holder other than
authority given and within a reasonable time./ the immediate transferee.
/But if any instrument, after completion, is The provisions of subdivision (c) of this section do
negotiated to a holder in due course, it is valid and not apply to a person negotiating public or
effectual for all purposes in his hands, and he may corporation securities other than bills and notes.
enforce it as if it had been filled up strictly in
SECTION 66. Liability of general indorser.
accordance with the authority given and within a
reasonable time./ Every indorser who indorses without qualification,
SECTION 15. Incomplete instrument not warrants to all subsequent holders in due course:
delivered. a) The matters and things mentioned in
subdivisions (a), (b), and (c) of the next
/Where an incomplete instrument has not been
preceding section; and
delivered, it will not, if completed and negotiated
b) That the instrument is, at the time of his
without authority, be a valid contract in the hands
indorsement, valid and subsisting;
of any holder, as against any person whose
signature was placed thereon before delivery./ And, in addition, he engages that, on due
presentment, it shall be accepted or paid, or both,
SECTION 16. Delivery; when effectual; when
as the case may be, according to its tenor, and that
presumed.
if it be dishonored and the necessary proceedings
/Every contract on a negotiable instrument is on dishonor be duly taken, he will pay the amount
incomplete and revocable until delivery of the thereof to the holder, or to any subsequent
instrument for the purpose of giving effect thereto/ indorser who may be compelled to pay it.
/As between immediate parties and as regards a
remote party other than a holder in due course, the
delivery, in order to be effectual, must be made
either by or under the authority of the party making,
drawing, accepting, or indorsing, as the case may
be; and in such case, the delivery may be shown
to have been conditional, or for a special purpose
only, and not for the purpose of transferring the
property in the instrument/
/But where the instrument is in the hands of a
holder in due course, a valid delivery thereof by all
parties prior to him so as to make them liable to
him is conclusively presumed/
/And where the instrument is no longer in
possession of a party whose signature appears
thereon, a valid and intentional delivery by him is
presumed until the contrary is proved./