Davidson v. . Powell

Citations

• 19 S.E. 601
• 114 N.C. 575

Syllabus

<p>Indorsement of Note — Sivrety—Biyrden of Proof.</p> <p>1. Where the payee (whether original or by a previous indorsement) of a note assigns or transfers it by indorsement he becomes simply an indorser and, by section 50 of The Code, liable as' a surety unless by the terms of the assignment he limits his liability; if he intends to transfer the title only he should use the words “ without recourse” or other phrase of similar import.</p> <p>2. An indorsement, “ I assign over the within note to P.,” does not limit the indorser’s liability as such.</p> <p>8. While, if the note be in the hands of the original payee, an indorsement may be shown to have been upon certain conditions, yet a bona fide holder for value, before maturity and without notice, is not affected by any equities existing between the original parties, and the same rule applies between the last payee and all subsequent indorsers.</p> <p>4. The burden of proof is upon an indorser to show any agreement by which his liability was restricted.</p>