42Transfer of order cheque without indorsement

#### 42 Transfer of order cheque without indorsement (1) Where the holder of a cheque payable to order, without indorsing the cheque, delivers the cheque, for value, to another person in order to transfer the cheque by negotiation, the other person, by virtue of the delivery: (a) receives the title that the holder had in the cheque; and (b) acquires the right to have the holder indorse the cheque to the other person. (2) Without limiting the generality of subsection 17(2), where a person is under an obligation by virtue of subsection (1) to indorse a cheque as an agent or in a representative capacity, the person may indorse the cheque in terms negativing the person’s own liability on the cheque.