Sec.6.  A note made by two or more persons may be joint or joint or several.  When it is written, “We promise to pay,” it is only a joint note, and all must be sued together.  If written, “We jointly and severally promise to pay,” they may be sued either jointly or separately.  Also if written “I promise to pay,” it is treated as a joint and several note.  A note written, “We promise,” and signed, A. B., principal, and C. D., security, is the joint note of both; and if written, “I promise,” and signed in the same manner, it is the joint and several note of both.

Sec.7.  Any person having in possession a negotiable note, though a mere agent, is deemed the true owner, and may sue it in his own name, without showing title.  The bona fide holder can recover upon the paper, though it came to him from a person who had stolen or robbed it from the true owner; provided he took it innocently in the course of trade for a valuable consideration before it was due, and with due caution.  But if suspicion is cast upon the title of the holder, by showing that the instrument has got into circulation by force or fraud, then the holder must show the consideration he gave for it.

Sec.8.  Ordinarily, a person can not convey to another a valid title to property which is not lawfully his own; and hence the purchaser of stolen goods must give them up to the lawful owner.  The exception to this rule, in the case of promissory notes, seems to be founded in reason and good policy.  The use of negotiable paper in commercial transactions is of great public convenience; and it is proper that, for the sake of trade, protection should be given to the holder of such paper who receives it fairly in the way of business, though it has been paid, if he received it before it fell due.

Sec.9.  But it is equally material for the interests of trade, that the owner should have due protection.  Hence if a person takes a note from a stranger without inquiring how he came by it; or does not take it in the usual course of business, or for some responsibility incurred on the credit of the note, he takes it at his peril.  But the owner, in order to place his right to relief beyond question, ought to use diligence in apprising the public of the loss of the note.

Sec.10.  A person buying a note after it has become due, takes it at his peril.  Although the holder may sue it in his own name, the maker may offset any demands which he had against the promisee before it was transferred, as in the case of notes not negotiable. (Sec.2.) But when notes in which no day of payment is expressed comes under this rule, is a question to be determined by circumstances.  In New Jersey and Pennsylvania, the words “without defalcation or discount,” or words to that effect, must be inserted in notes, or they may be met by offsets as notes that are bought after due.

Sec.11.  A note made payable in some commodity is not negotiable.  If it is not paid according to the conditions therein expressed, the maker becomes liable to pay in cash.  But in either case, if it passes to a third person, he can sue it only in the name of the promisee or payee; and it may be met by offsets as other notes not negotiable, (Sec.2,) and notes bought after due. (Sec.10.)