Section 58Part 2 — Bills of Exchange
Transferor by delivery and transferee
←→ Navigate · Click subsection badges to collapse · Press ? for help
Where the holder of a bill payable to bearer negotiates it by delivery without indorsing it, the holder is called a “transferor by delivery”.
A transferor by delivery is not liable on the instrument.
A transferor by delivery who negotiates a bill thereby warrants to the transferor’s immediate transferee, being a holder for value, that the bill is what it purports to be, that the transferor has a right to transfer it and that at the time of transfer the transferor is not aware of any fact which renders it valueless.