WHEN HOLDER MAY OR MAY NOT STRIKE OUT INDORSEMENT
• But where the instrument is transferred by special indorsement, the holder has no right to strike out the name of the person mentioned in such indorsement and insert his own name in place thereof; nor can he strike out such name and convert such special indorsement into a blank indorsement
• The holder who acquires title subsequent to the succeeding special indorsement must trace his title not only through the blank indorsement but through the special indorsement as well
EFFECT OF STRIKING OUT
1. The indorser whose indorsement is struck out is relieved from his liability on the instrument
2. All subsequent indorsers are also relieved from their liability on the instrument
