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

2. If the instrument is payable to the order of the maker or
drawer, or is payable to bearer, he is liable to all parties subse-
quent to the maker or drawer.

8. If he signs for the accommodation of the payee, he is liable
to all parties subsequent to the payee.

84. Every person negotiating an instrument by delivery or by
a qualified indorsement, warrants:

1. That the instrument is genuine and in all respects what it
purports to be;

2. That he has a good title to it;

3. That all prior parties had capacity to contract;

4. That he has no knowledge of any fact which would impair
the validity of the instrument or render it valueless.

But when the negotiation is by delivery only, the warranty
extends in favor of no holder other than the immediate trans-
feree.

The provisions of sub division three of this section do not
apply to persons negotiating public or corporate securities, other
than bills and notes.

85. Every indorser who indorses without qualification, war-
rants to all subsequent holders in due course:

1. The matters and things mentioned in sub-divisions one, two
and three of the next preceding section; and

2. That the instrument is at the time of his indorsement valid
and subsisting.

And, in addition, he engages that, on due presentment, it shall
be accepted or paid, or both, as the case may be, 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.

86. Where a person places his indorsement on an instrument
negotiable by delivery, he incurs all the liabilities of an indorser.

87. As respects one another, indorsers are liable prima facie
in the order in which they indorse; but evidence is admissible to