No maker of a promissory note and no acceptor of a bill of exchange ¹[payable to order] shall, in a suit thereon by a holder in due course, be permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.

1. Subs. by Act 8 of 1919, s. 5, for payable to, or to the orderof, a specified person.