Section 30 of IPC : Section 30: ''Valuable Security''

Explanation using Example

Imagine a scenario where a person named John holds a promissory note, which is a written promise to pay a certain sum of money to another person, Sarah. This promissory note is a "valuable security" because it represents the legal right to receive money. If John sells a car to Sarah and accepts the promissory note as payment, he is relying on the legal right that the document provides – the right to claim the specified amount of money from Sarah.

Example: John later decides to sell this promissory note to his friend, Mike, for a lesser amount. He endorses the note by signing his name on it, which transfers his rights to collect the debt from Sarah to Mike. This endorsement turns the promissory note into an endorsed "valuable security" for Mike, who now has the legal right to claim the money from Sarah.