Generally, an indorser, merely by indorsing, impliedly promises to the pay the holder, or any subsequent endorser the amount of the instrument if the drawer or maker defaults.

Question

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By endorsing a negotiable instrument, the endorser not only transfers their rights to the endorsee but also implies a promise to pay the amount of the instrument if the original drawer or maker fails to pay. This is a form of secondary liability.

Generally, an Indorser, Merely by Indorsing, Impliedly Promises to the Pay