§3-1205. Special indorsement; blank indorsement; anomalous indorsement
(1).
If an indorsement is made by the holder of an instrument, whether payable to an
identified person or payable to bearer, and the indorsement identifies a person to
whom it makes the instrument payable, it is a "special indorsement." When specially
indorsed, an instrument becomes payable to the identified person and may be negotiated
only by the indorsement of that person. The principles stated in Section 3-1110 apply
to special indorsements.
[
1993, c. 293, Pt. A, §2 (NEW)
.]
(2).
If an indorsement is made by the holder of an instrument and it is not a special
indorsement, it is a "blank indorsement." When indorsed in blank, an instrument becomes
payable to bearer and may be negotiated by transfer of possession alone until specially
indorsed.
[
1993, c. 293, Pt. A, §2 (NEW)
.]
(3).
The holder may convert a blank indorsement that consists only of a signature into
a special indorsement by writing, above the signature of the indorser, words identifying
the person to whom the instrument is made payable.
[
1993, c. 293, Pt. A, §2 (NEW)
.]
(4).
"Anomalous indorsement" means an indorsement made by a person who is not the holder
of the instrument. An anomalous indorsement does not affect the manner in which the
instrument may be negotiated.
[
1993, c. 293, Pt. A, §2 (NEW)
.]
SECTION HISTORY
1993, c. 293, §A2 (NEW).