Must be payable to order or to bearer.
In a bill of exchange (check), the party directed to pay must be reasonably certain.
Every negotiable instrument is presumed to have been issued for a valuable consideration, and want of consideration in the creation of the instrument is not a defense against a bona-fide holder.
An instrument is negotiated, that is completely transferred, so as to vest title in the purchaser, if payable to bearer, or indorsed simply with the name of the last holder, by mere delivery; if payable to order, by the indorsement of the party to whom it is payable and delivery.
One who transfers an instrument by indorsement warrants to every subsequent holder that the instrument is genuine, that he has title to it, and that if not paid by the party primarily liable at maturity, he will pay it upon receiving due notice of non-payment.
To hold an indorser liable the holder upon its non-payment at maturity must give prompt notice of such non-payment to the indorser and that the holder looks to the indorser for payment. Such notice should be sent within twenty-four hours.
When an indorser is thus compelled to pay he may hold prior parties, through whom he received the instrument, liable to him by sending them prompt notice of non-payment upon receiving such notice from the holder.
One who transfers a negotiable instrument by delivery, without indorsing it, simply warrants that the instrument is genuine, that he has title to it, and knows of no defense to it, but does not agree to pay it if unpaid at maturity.
The maker of a note is liable to pay it, if unpaid at maturity, without any notice from the holder or indorser.
Notice to one of several partners is sufficient notice to all.