Nov 09, 2013 6:35 PM

§227. Instruments payable to bearer or indorsed in blank. A holder of a negotiable instrument payable to bearer or payable to order and indorsed in blank can sue on it in his own name.** Any holder of a bill or note who can trace a good legal title to it may sue upon it in his own name whether or not he holds the beneficial interest in it. And the defendant can question the title of the holder only when necessary to preclude further liability upon the instrument or to let in a defense which he desires to setup.** The holder may sue in his own name on an instrument which has been indorsed in blank regardless of the fact that subsequent indorsements appear on the instrument as these may be stricken out as unnecessary to make title.*' Where a negotiable instrument is payable to bearer,the original holder or someone to whom the legal title has been transferred by delivery must bring suit on the instrument.*^ Where a negotiable instrument is in effect, payable to order, and has not been indorsed in blank,only the original payee or the person to whom the instrument has been indorsed can maintain an action upon it.*