Negotiable Instruments Act Section 56 — Indorsement for part of sum due
CHAPTER IV OF NEGOTIATION
General
Summary
A note written on a negotiable instrument is not valid for transferring it if the note tries to give away only part of the total amount owed. However, if some of the money has already been paid, a note saying so can be written on the instrument, and then the instrument can be transferred for the remaining balance.
Official Text
No writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount appearing to be due on the instrument; but where such amount has been partly paid, a note to that effect may be indorsed on the instrument, which may then be negotiated for the balance.