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Who May Negotiate a Bill

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WHO MAY NEGOTIATE A BILL. In general a bill must be negotiated by the de facto holder, that is, the person in possession of a bill and to whom it is payable, whether his possession be lawful or not. And in such sense it is broader in significance than the term "holder, ' which cus tomarily means lawful holder. If the bill is pay able to bearer the person in possession is the de facto holder, but if the bill is payable to order the de facto holder must have possession and be the person to whom it is payable. But if the name- is mispelled, or wrongly designated, the holder may negotiate by writing the name as in the bill, and then his true name. (Bryant v. Eastman, 7 Cush , II; Redmond v. Stansbury, 24 Mich , 445 ) So the person who obtains title by transfer by act of law is a defrcto holder. But two or more persons to whom a bill is payable, not being partners, must each indorse the bill, unless one has authority to indorse for all. (Ryhiner v. Feickert, 92 Ill., 305.)

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