BILLS OF EXCHANGE AND PROMISSORY NOTES 477

An. Code, 1924, sec. 68. 1912, sec. 68. 1904, sec. 68. 1898, ch. 119.

68. Where the holder of an instrument payable to his order transfers
it for value without indorsing it, the transfer vests in the transferee such
title as the transferor had therein; and the transferee acquires, in addition,
the right to have the indorsement of the transferor. But for the purpose
of determining whether the transferee is a holder in due course, the nego-
tiation takes effect as of the time when the indorsement is actually made.

An. Code, 1924, sec. 69. 1912, sec. 69. 1904, sec. 69. 1898, ch. 119.

69. Where an instrument is negotiated back to a prior party, such
party may, subject to the provisions of this act, re-issue and further nego-
tiate the same. But he is not entitled to enforce payment thereof against
any intervening party to whom he was personally liable.

CHAPTER V.—Rights of Holder.

An. Code, 1924, sec. 70. 1912, sec. 70. 1904, sec. 70. 1898, ch. 119.

70. The holder of negotiable instrument may sue thereon in his own
name; and payment to him in due course discharges the instrument.
See notes to Art. 66, sec. 26.

An. Code, 1924, sec. 71. 1912, sec. 71. 1904, sec. 71. 1898, ch. 119.

71. A holder in due course is a holder who has taken the instrument
under the following conditions:

1. That it is complete and regular on its face.

2. That he became the holder of it before it was overdue, and without
notice that it had been previously dishonored, if such was the fact.

3. That he took it in good faith and for value.

4. That at the time it was negotiated to him he had no notice of any
infirmity in the instrument or defect in the title of the person negoti-
ating it.

Where the plaintiff takes a note with knowledge of the insolvency of the corporation
which made it, and that it was issued by the company in part payment for its own
capital stock (which the law prohibits it from buying), he is not a holder in due course.
Burke v. Smith, 111 Md. 627.

A check held to be complete and regular on its face, and that the endorsee took it
without knowledge of such facts as made his taking it amount to bad faith—see sec. 75.
Weant v. Southern Trust Co., 112 Md. 471; Dean v. Eastern Shore Trust Co., 159
Md. 220.

Where notes are purchased before maturity in good faith and for value, without
notice of any infirmity in the notes, or defect in the title of the seller, the purchaser
may recover on the notes. No evidence that contract was resorted to to conceal usurious
loan. Dolph v. Stubblefield, 135 Md. 156.

This section referred to in construing secs. 14 and 138—see notes thereto. Jamesson v.
Citizens Bank, 130 Md. 85.

See notes to sec. 78 and art. 66, see 26.

An. Code, 1924, sec. 72. 1912, sec. 72. 1904, sec. 72. 1898, ch. 119.

72. Where an instrument payable on demand is negotiated an unrea-
sonable length of time after its issue, the holder is not deemed a holder
in due course.

An. Code, 1924, sec. 73. 1912, sec. 73. 1904, sec. 73. 1898, ch. 119.

73. Where the transferee receives notice of any infirmity in the in-
strument or defect in the title of the person negotiating the same before.