WHEN PERSON DEEMED INDORSER - Negotiable Instruments

Sec.  63.  When  a  person  deemed  indorser.  -  A  person  placing  his signature upon an instrument otherwise than as maker, drawer, or acceptor,  is  deemed  to  be  indorser  unless  he  clearly  indicates  by appropriate   words  his  intention  to   be  bound  in  some  other capacity.
 

WHEN PERSON DEEMED INDORSER

•      In  the  absence  of  any  indication  in  what  capacity  a  person  whose signature is written on the instrument intends to be bound, he shall be deemed as an indorser
 

INDICATION TO BE BOUND OTHERWISE THAN INDORSER

•      Will not be deemed as an indorser if he indicates by appropriate words his intention to be bound in some other capacity
•      But anyone who assumes the responsibility of identifying the payee of a check is answerable to the bank cashing the check if the bank pays its amount to such payee so identified
 

ADMISSIBILITY OF PAROL EVIDENCE

•      The  statutory  command  that  the  legal  effect  of  a  blank  instrument cannot be changed by parol proof or by evidence from other source
•      The  intent  to  be  bound  in  some  other  capacity  than  as  an  indorser must be indicated in the indorsement or on the face of the instrument and cannot be shown by parol