BUSLAW 4 October 25, 2018

 Always assume that the person is a general indorsement because a

Qualified indorser is always specified
 All indorsers have a warranty
 General
o Genuine, Valid, subsisting
o What it purports to be
o Awareness and lack of knowledge is immaterial
 Does not matter if he is aware of the illegal consideration
 Qualified indorser that is now aware of illegality (legal consideration),
bankruptcy, or insolvency: not liable
 When title to the instrument is defective
o If he obtained the instrument, or any signature thereto:
 By fraud, as when an agent-broker employed to buy stick
and received a check therefor, but has not to bought a
stock
 By duress, force and fear, as when the maker signed a note
under threat of killing of a member of his family
 For an illegal consideration, such as when a note is issued
to stifle a criminal prosecution
 Obtained instrument or signature by FRAUD
o General indorser: liable
o Qualified indorser: liable
 Through Duress or Fear
 o General and Qualified indorsement: Liable
 It does not matter if you are aware
 Negotiation & Delivery

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