(2.) Provided that if any bill of exchange for the payment of money on demand, liable only to the duty of one penny, is presented for payment unstamped, the person to whom it is so presented may affix thereto a proper adhesive stamp, and cancel the same, as if he had been the drawer of the bill, and may, upon so doing, pay the sum in the said bill mentioned, and charge the duty in account against the person by whom the bill was drawn, or deduct such duty from the said sum, and such bill is, so far as respects the duty, to be deemed good and valid.

(3.) But the foregoing proviso is not to relieve any person from any penalty he may have incurred in relation to such bill.

55. When a bill of exchange is drawn in a set according to the custom of merchants, and one of the set is duly stamped, the other or others of the set shall, unless issued or in some manner negotiated apart from such duly stamped bill, be exempt from duty; and upon proof of the loss or destruction of a duly stamped bill forming one of a set, any other bill of the set which has not been issued or in any manner negotiated apart from such lost or destroyed bill may, although unstamped, be admitted in evidence to prove the contents of such lost or destroyed bill."

12. Indorsements.

An indorsement should always appear at the back of the instrument. Payment of a bill or note, however, need not be refused on account of the indorsement appearing on the face, as it has the same effect legally. An indorsement is a conditional contract on the part of the indorser to pay the immediate or any succeeding indorsee, in case of the acceptor's or maker's default. On indorsing a bill or note to another person, care should be taken to spell the indorsee's name correctly, as much unnecessary delay occurs in business for want of this precaution, it being presumed that it is not the person intended when the spelling of the name differs. The mis-spelling of an indorsement does not necessarily avoid the instrument. A payee indorsing a bill not negotiable is liable to his indorsee; for each indorser takes the place as it were of a new drawer. It seems, however, that the bill not being negotiable, destroys the stamp, and the indorsee cannot acquire a right without a new stamp, which is contrary to law. The indorsement of a note - whether negotiable or not - by a person to whom it has not been transferred, does not render him liable on his indorsement; for though each indorser of a bill may be treated as a new drawer or maker, and in that capacity requires notice of dishonour, yet the indorser of a note cannot, without altering his situation for the worse, be treated as the drawer or maker of the note, as he thereby loses his right to notice of dishonour. A bill payable to order cannot be transferred without indorsement. An indorsement may be either special or blank; the former is when the indorser indorses the instrument to another person, who must affix his signature if it be intended further to negotiate it, or to receive the contents at maturity; the latter, when the indorser merely signs his name, after which it payable to bearer. No particular form of words is necessary to constitute an indorsement. If the number of indorsements exceed the limit of paper an additional slip may be attached, which becomes part of the instrument, and requires no further stamp. The French call this additional slip an allonge. If two persons are made payees of a bill, not being partners, they must both indorse. Neither an indorsement nor an acceptance is complete before delivery; giving in charge to a servant would not be considered a legal transfer of the property, but to a postman it would. It has been held that if there be a written, or even verbal agreement between a first indorser and his immediate indorsee, that the indorsee shall not sue the indorser, but the acceptor only, it would be a good defence on the part of the indorser in the event of such agreement being broken; it would be unadvisable however, under any circumstances, to have only parole evidence of such an agreement. A transfer by indorsement gives a right of action to the indorsee against all persons whose names appear on the bill, in case of default of acceptance or payment. If a payee transfer a bill without indorsing, the holder has no remedy in his own name against any one but the person from whom he received it; but if it can be shown that the bill was delivered purposely without being indorsed, when it was intended that it should be indorsed, an action may be maintained against the endorsee or his personal representatives by a bill in equity, to obtain indorsement. A person making a trustee the depository of a bill of exchange to be used for certain purposes, should show in the indorsement to what purpose it was to be applied, which is termed a 'restrictive indorsement' The transferor of a bill payable to bearer, and consequently without indorsement, does not become liable in the event of the instrument being dishonoured, as it is held to be a bond fide sale prima facie, carrying no evidence of antecedent parties. All documents payable to bearer circulate as cash. An indorsement may be made before the bill is drawn, in which case the indorser renders himself liable for any amount within the stamp. A promissory note, payable on demand, is not considered overdue, nor can any interest be recovered on it unless there is some evidence upon it of its having been presented and refused payment. As we have before stated, it may be endorsed from hand to hand as a continuing security. It is held that if a bill be paid before it is due, it may be indorsed over, and remain a valid security in the hands of a bond fide indorsee, but a bill paid at maturity cannot be re-issued. The payment of a bill before it is due does not extinguish it, any more than if it were discounted. In case of partial payment at maturity, the holder cannot recover more than the balance of the acceptor. A bill or note cannot be indorsed for part of the sum remaining due to the indorser upon it, as it would cause a plurality of actions against prior parties, and would be contrary to the custom of bankers and merchants; but if a bill or note be endorsed, or delivered for a part of the sum due upon it, and the limit is not specified on the instrument, the transferee is entitled to sue the maker or acceptor for the whole amount, and becomes the trustee of the transferer for the surplus. If a bill has been paid in part for the acceptor, or drawer by an agent, it may be indorsed for the remainder due. A release at maturity is the same as payment at maturity, and extinguishes the bill; but a premature release of a party liable on the bill, does not discharge the releasee as against an indorsee for value without notice. Where a holder has died, having only signed his name, without delivery, his executor cannot complete the indorsement by delivery. A married woman acquiring a right to a bill or note, either before or during marriage, the husband should indorse. The indorser of a note places himself in the position of a surety to the maker, and thereby renders himself liable in case the maker cannot pay. An indorser of a bill not negotiable, renders himself liable to be sued by his indorsee, the indorser being the new drawer, and by his act having deprived his indorsee of the right to sue the acceptor or maker. An indorser may, however, enter into an agreement with his indorsee not to hold him liable, in which case the indorsee cannot sue*; but a subsequent indorsee, unless having had due notice of the agreement, may sue. The holder of a bill cancelling an indorsement intentionally, discharges the indorser. A person having twice indorsed the same bill, cannot, as a rule, sue the intermediate indorsers. If a man commit a breach of trust by indorsing to a third person a bill indorsed to him for a particular purpose, the indorsee, cognizant of the breach of trust, cannot sue the real owner of the bill; but, on the contrary, the owner may bring an action to have the bill restored. A person taking an overdue bill renders himself liable to anything that may happen in connection with the bill; being overdue it is said to come 'disgraced' to the indorsee. A drawer or indorser taking up a bill at maturity, may, by indorsing it to another person, transfer the right to sue on the bill. The person having possession of a note, part of which has been already paid, can only indorse for the balance.