Murphy v. Drum & Bugle Corps

1. Under the provisions of section 16 of the negotiable instruments law, indorsement of a note before delivery to the payee may be made conditional, but to be binding on the payee such conditions must be accepted by him, made with notice to him or acknowledged on his part before or accompanying delivery. “As between 'immediate parties, and as regards a remote party other than a holder in due course, the deliverjq in order to be effectual, must be made either by or under the authority of the party making, drawing, accepting, or indorsing, as the case may be; and in such case the deliveiy may…