ART. 13] NEGOTIATION. 279

CHAPTER IV—Negotiation.

1904, art. 13, sec. 49. 1898, ch 119.

49. An instrument is negotiated when it is transferred from one
person to another in such manner as to constitute the transferee, the
holder thereof.

If payable to bearer, it is negotiated by delivery; if payable to order,
it is negotiated by the indorsement of the holder completed by delivery.

Ibid. sec. 50. 1898, ch. 119.

50. The indorsement must be written on the instrument itself or
upon paper attached thereto. The signature of the indorser, without
additional words, is a sufficient indorsement.

Ibid. sec. 51. 1898, ch. 119.

51. The indorsement must be an indorsement of the entire instru-
ment. An indorsement which purports to transfer to the indorsee a
part only of the amount payable, or which purports to transfer -the
instrument to two or more indorsees severally, does not operate as a
negotiation of the instrument. But where the instrument has been
paid in part, it may be indorsed as to the residue.

Ibid. sec. 52. 1898, ch. 119.

52. An indorsement may be either special or in blank; and it may
be either restrictive or qualified, or conditional.

Ibid. sec. 53. 189S, ch. 119.

53. A special indorsement specifies the person to whom, or to whose
order, the instrument is to be payable; and the indorsement of such
indorsee is necessary to the further negotiation of the instrument. An
indorsement in blank specifies no indorsee, and an instrument so
indorsed is payable to bearer, and may be negotiated by delivery.

Ibid. sec. 54. 1898, ch. 119.

54. The holder may convert a blank indorsement into a special
indorsement by writing over the signature of the indorser in blank any
contract consistent with the character of the indorsement.

Ibid. sec. 55. 1898, ch. 119.

55. An indorsement is restrictive, which either:

1. Prohibits the further negotiation of the instrument; or

2. Constitutes the indorsee the agent of the indorser; or

3. Vests the title in the indorsee in trust for or to the use of some
other person. But the mere absence of words implying power to nego-
tiate does not make an indorsement restrictive.

Ibid. sec. 56. 1898, ch. 119.
56. A restrictive indorsement confers upon the indorsee the right:

1. To receive payment of the instrument;

2. To bring any action thereon that the indorser could bring;