84 BILLS OF EXCHANGE AND PROMISSORY NOTES. [ART. 13

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 negotiating it.

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

73. Where the. transferee receives notice of any infirmity in
the instrument or defect in the title of the person negotiating
the same before he has paid the full amount agreed to be paid
therefor, he will be deemed a holder in due course only to the
extent of the amount theretofore paid by him.

74. The title of a person who negotiates an instrument is
defective within the meaning of this act, when he obtained the
instrument, or any signature thereto, by fraud, duress, or force
and fear, or other unlawful means, or for an illegal consideration,
or when he negotiates it in breach of faith, or under such circum-
stances as amount to a fraud.

75. To constitute notice of an infirmity in the instrument or
defect in the title of the person negotiating the same, the person
to whom it is negotiated must have had actual knowledge of the
infirmity or defect, or knowledge of such facts that his action in
taking the instrument amounted to bad faith.

76- A holder in due course holds the instrument free from any
defect of title of prior parties, and free from defenses available
to prior parties among themselves, and may enforce payment of
the instrument for the full amount thereof against all parties
liable thereon.

77. In the hands of any holder other than a holder in due
course, a negotiable instrument is subject to the same defences
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 affecting the instrument, has all the
rights of such former holder in respect of all parties prior to the
latter.