Bills of Exchange Act 1949 · 2020 Revised Edition · Part 2 · Bills of Exchange
31. Negotiation of bill
Feedback & supportA bill is negotiated when it is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill.
A bill payable to bearer is negotiated by delivery.
bearer
“bearer” means the person in possession of a bill or note which is payable to bearer;
A bill payable to order is negotiated by the indorsement of the holder completed by delivery.
Where the holder of a bill payable to his order transfers it for value without indorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the indorsement of the transferor.
holder
“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
Where any person is under obligation to indorse a bill in a representative capacity, he may indorse the bill in such terms as to negative personal liability.