LLOYD LOWNDES, ESQUIRE, GOVERNOR. 219

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.

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 wil] 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 in-
dorser.

87. As respects one another, indorsers are liable prima
facie in the order in which they indorse; but evidence is
admissible to show that as between or among themselves they
have agreed otherwise. Joint payees or juint indorsees who
indorse are deemed to indorse jointly and severally.

88. Where a broker or other agent negotiates an instru-
ment without indorsement, he incurs all tine liabilities pre-
scribed by section eighty four of this Article, unless he dis-