law: Negotiable Instruments Act, 1881 
  59. Instrument acquired after dishonor or when overdue 
  The holder of a negotiable instrument, who has acquired it after
  
  dishonor, 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 the 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 were not paid at maturity. The bill not
  
  having been paid at maturity, the drawer sold the goods and retained the
  
  proceeds, but endorsed the bill to A. A's title is subject to the same
  
  objection as the drawer's title.