To Make An Indorser Liable On His Indorsement The instrument must be commercial paper; For the indorsement of a bond or single

bill will not, per se, create a responsibilit ! "OMM#$"IAL %A%#$ defined& 'ills of e(change )i!e!, drafts*, promissor notes, bank+checks, and other negotiable instruments for the pa ment of mone , which, b their form and on their face, purport to be such instruments! ,hort+term, unsecured promissor notes, generall issued b large, well+known corporations and finance companies! -!"!"! Article . is the general law go/erning commercial paper! ,ee also 'earer instrument; Instrument; 0egotiable instruments; 0ote; Trade acceptance! ,ecurities law! "ommercial paper is a 1securit 1 under the 2lass+,teagall Act and therefore is sub3ect to its proscriptions on commercial banks marketing 1stocks, bonds, debentures, notes, or other securities!1 ,ecurities Industr Association /! 'oard of 2o/ernors of the Federal $eser/e , stem et aI!, 456 -!,! 7.8, 794 ,!"t! :;8;, ;: L!#d!:d 798! 'lack<s Law =ictionar ,i(th #dition )page :87* "OMM#$"IAL -,# defined& Term implies use in connection with or for furtherance of a profit+making enterprise! $oberts #nterprises, Inc! /! ,ecretar of Transp!, :.8 >an! :85, 5;; %!:d 48;, 46.! 'lack<s Law =ictionar ,i(th #dition )page :87* ,#"-$ITI#, defined& ,tocks, bonds, notes, con/ertible debentures, warrants, or other documents that represent a share in a compan or a debt owed b a compan or go/ernment entit ! #/idences of obligations to pa mone or of rights to participate in earnings and distribution of corporate assets! Instruments gi/ing to their legal holders rights to mone or other propert ; the are therefore instruments which ha/e intrinsic /alue and are recogni?ed and used as such in the regular channels of commerce! @!,! /! "anton, "!A!0!A!, 489 F!:d 657, 65B! ,ee also 'ond; "onsolidated securities; "on/ertible securities; =ebenture; =istribution; 2rowth stock; Letter stock; Listed securit ; Marketable securities; Municipal securities; $egistration of securities; ,ecurit ; ,tock; Treasur stock; Catered stock! For marshalling of securities, see Marshalling assets! "oupon securities! ,ee "oupons! 'lack<s Law =ictionar ,i(th #dition )page 7.B4* #D#M%T ,#"-$ITI#, defined& Those securities which need not be registered under pro/isions of ,ecurities Act of 7;.., E .; 7B @!,!"!A! EE 88c, 86c)7:*! 'lack<s Law =ictionar ,i(th #dition )page 7.B4* ,#"-$ITI#, A"T OF 7;.. defined& Federal law which pro/ides for registration of securities which are to be sold to the public and for complete information as to the issuer and the stock offering! 7B -!,!"!A! E 88a et seF! ,ee also $egistration of securities; ,ecurities #(change Act of 7 ;.4! 'lack<s Law =ictionar ,i(th #dition )page 7.B4* I0=O$,#$ defined& contracts! The person who makes an indorsement! :! The indorser of a bill of e(change, or other negotiable paper, b his indorsement undertakes to be responsible to the holder for the amount of the bill or note, if the latter shall make a legal demand from the pa er, and, in default of pa ment, gi/e proper notice thereof to the indorser! 'ut the indorser ma make his indorsement conditional, which will operate as a transfer of the bill, if the condition be performed; or he ma make it Fualified, so that he shall not be responsible on non+pa ment b the pa er! "hitt on 'ills, 78;,769! .! To make an indorser liable on his indorsement, the instrument must be commercial paper, for the indorsement of a bond or single bill will not, per se, create a responsibilit ! 7. ,erg! G $awle, .77! 'ut see Tre/al /! Fitch, B Chart! .:B; Hopkins /! "umberland @alle $! $! "o!, . Catts G ,erg! 479! 4! Chen there are se/eral indorsers, the first in point of time is generall , but not alwa s, first+responsible; there ma be circumstances which ma cast the responsibilit , in the first place, as between them, on a subseFuent indorsee! B Munf! $! :B:! A Law =ictionar Adapted To The "onstitution And Laws Of The -nited ,tates Of America And Of The ,e/eral ,tates Of The American -nion b & Hohn 'ou/ier $e/ised ,i(th #dition, 76B5