59. Instrument acquired after dishonour or when overdue .—The holder of a negotiable instrument, who has acquired it after dishonour, whether by non -acceptance or non-payment, with notice thereof, or after maturity, has only, as against the other parties, the rights thereon of his transferor: Accommodation note or bill .—Provided that any person who, in good faith and for consideration, becomes the holder, after maturity, of a promissory note or bill of exchange made, drawn or accepted without consideration, for th e purpose of enabling some party thereto to raise money thereon, may recover the amount of the note or bill from any prior party.
Illustration The acceptor of a bill of exchange, when he accepted it, deposited with the drawer certain goods as a collateral security for the payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if it wer e not paid at maturity. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds , but indorsed the bill to A. A's title is subject to the same objection as the drawer's title.