ART. 13] LIABILITIES OF PARTIES—ENDORSEMENT. 339

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 on instrument,
places thereon his signature in blank before the delivery, he is
liable as endorser in accordance with the following rules:

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

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 sub-
sequent to the maker or drawer.

3. 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, accord-
ing 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.