1.

I have learned that indorsement is necessary to transfer title on the instrument to the
subsequent holder/indorsee or strengthen the security of the holder by assuming a
secondary liability for future payment by the indorser.
2. I have learned that indorsement is essential to the execution of an instrument payable
to the order of the maker or drawer
3. I have learned that the holder of a negotiable instrument is not necessarily the owner.
4. I have learned that the purpose of giving prompt notice of dishonor is to enable the
party, whom the holder wishes to charge, to preserve and enforce his rights against
prior parties.
5. I have learned that “good faith” means “honesty in fact in the transaction concerned”.
6. I have learned that there is no absolute requirement for the form of indorsement for as
long as it is written.
7. I have learned that each partner is an agent of the partnership or his co-partners.
Hence, presentment may be made to any one of them or to the agent of one of them. A
dishonor by one is a dishonor of all.
8. I have learned that in the hands of any holder other than a holder in due course, a
negotiable instrument is subject to any and every defense or defect in the instrument,
whether real or personal, as if it were non-negotiable.
9. I have learned that notice may be in writing or merely oral and may be given in any
terms which sufficiently identify the instrument and indicate that it has been dishonored
by non-acceptance or nonpayment and may be given by delivering it personally or
through emails.
10. I have learned that in order to constitute notice of infirmity or defect, the transferee
must have actual knowledge of the infirmity or defect; or knowledge of such facts
(which do not appear on the face of the instrument) that his action in taking the
instrument amounts to bad faith.