Negotiable Instruments Act, 1881

Effect of indorsement.

50. The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation; but the indorsement may, by express words, restrict or exclude such right, or may merely constitute the indorsee an agent to indorse the instrument, or to receive its contents for the indorser, or for some other specified person.

Illustrations

B signs the following indorsements on different negotiable instruments payable to bearer :-

(a)	-	"Pay the contents to C only".
(b)	-	"Pay C for my use."
(c)	-	"Pay C or order for the account of B."
(d)	-	"The within must be credited to C."
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