LLOYD LOWNDES, ESQUIRE, GOVERNOR. 213

right, is precluded from setting up the forgery or want of
authority.

CHAPTER III.

CONSIDERATION OF NEGOTIABLE INSTRUMENTS.
Index to Chapter III.

43. Presumption of consideration. 46. When lien -on instrument con-

44. What constitutes consideration. stitutes holder for value.

45. What constitutes holder for 47. Effect of want of consideration,
value. 48. Liability of accommodation

party.

43. Every negotiable instrument is deemed prima fade to
have been issued for a valuable consideration ; and every per-
son whose signature appears thereon to have become a party
thereto for value.

44. Value is any consideration sufficient to support a simple
contract. An antecedent of pre existing debt constitutes
value ; and it is deemed such whether the instrument is paya-
ble on demand or at a future time.

45. Where value has at any time been given for the instru-
ment, the holder is deemed a holder for value in respect to all
parties who became such prior to that time.

46. Where the holder has a lien on the instrument, arising
either from contract or by implication of law, he is deemed a
holder for value to the extent of his lien.

47. Absence or failure of consideration is matter, of defense
as against any person not a holder in due course; and partial
failure of consideration is a defense pro tanto, whether the
failure is an ascertained and liquidated amount or otherwise.

48. An accommodation party is one who has signed the in-
strument as maker, drawer, acceptor or indorser, without
receiving value therefor, and for the purpose of lending his
name to some other person. Such a person is liable on the in-
strument to a holder for value, notwithstanding such holder at
the time of taking the instrument knew him to be only an
accommodation party.

CHAPTER IV.

NEGOTIATION.
Index to Chapter IV.

49. What constitutes negotiation. 60. Indorsement ; how made. 51. Indorsement must be of entire instrument. 52. Kinds of indorsements.

53. Special indorsement; indorse- ment in blank. 54. Blank indorsement; how chang- ed to special indorsement. 55. When indorsement restrictive.