ART. 13] LIABILITIES OF PARTIES. 35

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 men-
tioned rule does not apply in favor of a party who became bound
on the instrument prior to the acquisition of such defective title.

CHAPTER VI—Liabilities of Parties.

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.

80. The drawer by drawing the instrument admits the exist-
ence of the payee and his then capacity to indorse, and engages
that on due presentment, 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 negativing or limiting his
own liability to the holder.

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 signa-
ture, and his capacity and authority to draw the instrument; and

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

82. A person placing his signature upon an instrument other-
wise than as maker, drawer, or acceptor is deemed to be an
indorser, unless he clearly indicates by appropriate words his
intention to be bound in some other capacity.

83. Where a person not otherwise a party to an instrument,
places thereon his signature in blank before delivery, he is liable
as indorser in accordance with the following rules:

1. If the instrument is payable to the order of a third person,
he is liable to the payee and to all subsequent parties.