Order in which indorsers are liable

Category: Law on Negotiable Instruments

Order in which indorsers are liable

Sec.  68.  Order  in  which  indorsers  are  liable.  -  As  respect  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 joint  indorsees  who  indorse  are  deemed  to  indorse  jointly  and severally.  
 

APPLICATION OF SECTION

•      Applies only with respect to an indorser as against another but not as against a holder in due course
•      Every  indorser  is  liable  to  all  indorsers  subsequent  to  him  but  not those prior to him whom he in turn makes liable
 

JOINT AND SEVERAL LIABILITY OF JOINT PAYEES

•      Joint payees or joint indorsees are deemed to indorse solidarily
 

EFFECT OF LACK OF NOTICE OF DISHONOR, ETC.

•      One of the joint indorsers cannot escape liability because proper notice of dishonor wasn’t given to his joint indorser