218 LAWS OF MARYLAND.

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.

Index to Chapter VI.

79. Liability of maker. 80. Liability of drawer. 81. Liability of acceptor. 82. When person deemed indorser. 88. Liability of irregular indorser. 84. Warranty; where negotiation by delivery, etc.

85. Liability of general indorsers. 86. Liability of indorser where paper negotiable by delivery. 87. Order in which indorsers are liable. 88. Liability of agent or broker.

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
otherwise 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 per-
son, he is liable to the payee and to all subsequent parties.