Indorser liability: indorser bound to subsequent holders on dishonour unless he expressly excludes or conditions liability. An indorser who endorses and delivers a negotiable instrument before maturity is bound to subsequent holders to compensate for loss caused by dishonour unless he expressly excludes or conditions his liability; compensation is payable provided due notice of dishonour is given to or received by the indorser, and after dishonour the indorser is liable as upon an instrument payable on demand.