47-3204

47-3204. Indorsement

A. "Indorsement" means a signature, other than that of a signer as maker, drawer or
acceptor, that alone or accompanied by other words is made on an instrument for the
purpose of negotiating the instrument, restricting payment of the instrument or incurring
the indorser's liability on the instrument, but regardless of the intent of the signer, a
signature and its accompanying words is an indorsement unless the accompanying words,
terms of the instrument, place of the signature or other circumstances unambiguously
indicate that the signature was made for a purpose other than indorsement. For the
purpose of determining whether a signature is made on an instrument, a paper affixed to
the instrument is a part of the instrument.

B. "Indorser" means a person who makes an indorsement.

C. For the purpose of determining whether the transferee of an instrument is a
holder, an indorsement that transfers a security interest in the instrument is effective
as an unqualified indorsement of the instrument.

D. If an instrument is payable to a holder under a name that is not the name of the
holder, indorsement may be made by the holder in the name stated in the instrument or in
the holder's name, or both, but signature in both names may be required by a person
paying or taking the instrument for value or collection.