AET. 13] EIGHTS OF HOLDER——LIABILITIES OF PAETIES. 283

parties among themselves, and may enforce payment of the instrument
for the full amount thereof against all parties liable thereon.
See notes to sections 71 and 75.

1904, art. 13, sec. 77. 1898, ch. 119.

77. In the hands of any holder other than a holder in due course, a
negotiable instrument is subject to the same defenses as if it were non-
negotiable. But a holder who derives his title through a holder in due
course, and who is not himself a party to any fraud or illegality affect-
ing the instrument, has all the rights of such former holder in respect
of all parties prior to the latter.

This section applied. Black v. Bank of Westminster, 96 Md. 417. See
also, Cover v. Myers, 75 Md. 418.

Ibid. sec. 78. 1898, ch. 119.

78. Every holder is deemed prima facie to be a holder in due course;
but when it is shown that the title of any person who has negotiated the
instrument was defective, the burden is on the holder to prove that he
or some person under whom he claims, acquired the title as a holder in
due course. But the last mentioned rule does not apply in favor of a
party who became bound on the instrument prior to the acquisition of
such defective title.

When the maker or acceptor of a negotiable Instrument produces evidence
to show that his signature was obtained by fraud, the burden of proof is
upon the plaintiff to show that he is a bona fide holder lor value. Stouffer
v. Alford, 114 Md. 110.

Cited but not construed in Weant v. Southern Trust Co., 112 Md. 471.

CHAPTER VI—Liabilities of Parties.

Ibid. sec. 79. 1898, ch. 119.

79. The maker of a negotiable instrument, by making it, engages
that he will pay it according to its tenor; and admits the existence of
the payee and his then capacity to indorse.

Ibid. sec. 80. 1898, ch. 119.

80. The drawer by drawing the instrument admits the existence of
the payee and his then capacity to indorse, and engages that on due pre-
sentment, the instrument will be accepted or paid, or both, according to
its tenor, and that if it be dishonored, and the necessary proceedings on
dishonor be duly taken, he will pay the amount thereof to the holder,
or to any subsequent indorser who may be compelled to pay it. But
the drawer may insert in the instrument an express stipulation negativ-
ing or limiting his own liability to the holder.

Ibid. sec. 81. 1898, ch. 119.

81. The acceptor, by accepting the instrument, engages that he will
pay it according to the tenor of his acceptance; and admits:

1. The existence of the drawer, the genuineness of his signature, and
his capacity and authority to draw the instrument; and

2. The existence of the payee and his then capacity to indorse.