Hong Kong Ordinances

BILLS OF EXCHANGE ORDINANCE - SECT 32

Requisites of valid indorsement

An indorsement in order to operate as a negotiation must comply with the
following conditions, namely-

   (a)  it must be written on the bill itself and be signed by the indorser.
        The simple signature of the indorser on the bill, without additional
        words, is sufficient. An indorsement written on an allonge, or
on a "copy" of a bill issued or negotiated in a country where "copies" are
recognized, is deemed to be written on the bill itself;

   (b)  it must be an indorsement of the entire bill. 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 operate
        as a negotiation of the bill;

   (c)  where a bill is payable to the order of two or more payees or
        indorsees who are not partners, all must indorse, unless the one
        indorsing has authority to indorse for the others;

   (d)  where, in a bill payable to order, the payee or indorsee is wrongly
        designated or his name is mis-spelt, he may indorse the bill as
        therein described, adding, if he thinks fit, his proper signature;

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

   (f)  an indorsement may be made in blank or special. It may also contain
        terms making it restrictive. [cf. 1882 c. 61 s. 32 U.K.]