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

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 affecting the instrument, has all
the rights of such former holder in respect of all parties prior
to the latter.
Black v. Bank of Westminster, 96 Md. 416.

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.

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
existence 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 sig-
nature, 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 on instrument
otherwise than as maker, drawer, or acceptor is deemed to be