47-8304. Indorsement
A. An indorsement may be in blank or special. An indorsement in blank includes an
indorsement to bearer. A special indorsement specifies to whom a security is to be
transferred or who has power to transfer it. A holder may convert a blank indorsement to
a special indorsement.
B. An indorsement purporting to be only of part of a security certificate
representing units intended by the issuer to be separately transferable is effective to
the extent of the indorsement.
C. An indorsement, whether special or in blank, does not constitute a transfer
until delivery of the certificate on which it appears or, if the indorsement is on a
separate document, until delivery of both the document and the certificate.
D. If a security certificate in registered form has been delivered to a purchaser
without a necessary indorsement, the purchaser may become a protected purchaser only when
the indorsement is supplied. However, against a transferor, a transfer is complete upon
delivery and the purchaser has a specifically enforceable right to have any necessary
indorsement supplied.
E. An indorsement of a security certificate in bearer form may give notice of an
adverse claim to the certificate, but it does not otherwise affect a right to
registration that the holder possesses.
F. Unless otherwise agreed, a person making an indorsement assumes only the
obligations provided in section 47-8108 and not an obligation that the security will be
honored by the issuer.
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