Report No. 11
99. Section 50.-
Section 50 has been recast in order to simplify it. It consists of two parts. The latter part refers to a restrictive indorsement but does not explain what constitutes a restrictive indorsement. There is no provision in our Act corresponding to section 35 of the Bills of Exchange Act or section 36 of the Uniform Negotiable Instruments Law. We have remedied this lacuna by adopting a new provision1 which combines the principles embodied in the English and American provisions, just cited.
The earlier part of section 50 gives the effects of or the rights following from indorsement. In the new section2 which represents that part, we have made it clear that the effect, which is generally stated, is subject to the provisions relating to restrictive, conditional and qualified indorsements.
1. Section 39, Ibid.
1. Section 45, ibid.
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