Tiong v Tang

#44 – Section 63

Facts:

Lorenzo Ting issued a check payable to "cash or bearer". With Felipe Ang's signature
(indorsement in blank) at the back thereof, the instrument was received by the plaintiff Ang Tiong
who thereafter presented it to the drawee bank for payment. The bank dishonored it.

The plaintiff then made written demands on both Lorenzo Ting and Felipe Ang that they
make good the amount represented by the check. These demands went unheeded; so he filed an
action for collection. The municipal court adjudged for the plaintiff against the two defendants.

Only Felipe Ang appealed that he be declared as guarantor thus insolvency proceedings
must be undertaken against the properties of Ting.

Issue:

WON Ang is a general indorser, thus insolvency proceeding must be instituted first againts Ting.

Held:

Ang is deemed an indorser. Section 63 of the NIL states that a person placing his signature upon
an instrument otherwise than as maker, drawer, or acceptor, is deemed to be indorser unless he
clearly indicates by appropriate words his intention to be bound in some other capacity. In this
case Ang placed his signature without qualifications. Hence he liable as an indorser and liabale
for warranties under section 66 where he engages that on due presentment, it shall be accepted or
paid, or both, as the case may be, and that if it be dishonored, he will pay the amount thereof to
the holder.