An indorser of a note is any person who writes his name on the back of it, and by so doing guarantees its payment. Indorsements on notes are usually made in blank, that is, without the words "Pay to the order of." The receiver of the note is then free to indorse it or not at his pleasure if he wishes to transfer it.

The indorser is liable for its payment if the maker fails to meet it. If an indorser should be compelled to pay a note he has a good claim against the maker, and against each indorser whose name appears above his own.

An indorser to whose order a note is drawn or indorsed, can transfer it without becoming liable for its payment by writing the words "without recourse" before or after his name on the back.

A person who receives a promissory note in good faith for fair value before the day of maturity, takes it free from all defects of title and from all claims that might be set up against any preceding holder. This is not true of notes transferred after maturity.