Respondent Ramos indorsed P30,000 out of P100,000 which is at the face of the instrument.
Whether or not there was a valid indorsement to Montinola.
NO. The check was not legally negotiated within the meaning of the Negotiable Instruments Law. Section 32 of the same law provides that “the indorsement must be an indorsement of the entire instrument. An indorsement which purports to transfer to the indorsee a part only of the amount payable…” as in this case, does not operate as a negotiation of the instrument. Montinola may therefore not be regarded as an indorsee. At most he may be regarded as a mere assignee of the P30,000 sold to him by Ramos, in which case, as such assignee, he is subject to all defenses available to the drawer-respondent Ramos.