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Bills of Exchange Act, 1964 (Act No. 34 of 1964)

Chapter I

Negotiation of bills

30. Manner of indorsing


(1) An indorsement, in order to effect a negotiation of a bill, must be written on the bill itself, be signed by the indorser, and be an indorsement of the entire bill: Provided that an indorsement written on the allonge of a bill or on a copy of a bill issued or negotiated in a country where copies are recognized, shall be deemed to be written on the bill itself.


(2) The simple signature of the indorser on the bill without additional words is sufficient to constitute an indorsement.


(3) A partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not effect a negotiation of the bill.


(4) If a bill is payable to the order of two or more payees or indorsees who are not partners, all must indorse in order to effect a negotiation of the bill, unless the one indorsing has authority to indorse for the others.


(5) If in a bill payable to order, the payee or indorsee is wrongly designated, or his name is misspelt, he may, in order to effect a negotiation of the bill, indorse the bill as he is therein described, adding, if he thinks fit, his proper signature.

[Sub-section (5) substituted by section 11 of Act 56 of 2000.]


(6) If there are two or more indorsements on a bill, each indorsement is deemed, until the contrary is proved, to have been made in the order in which it appears on the bill.


(7) An indorsement may be made in blank or special and may also contain terms making it restrictive.