§490:3-205  Special indorsement; blank
indorsement; anomalous indorsement.  (a)  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 490:3-110
apply to special indorsements.



(b)  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.



(c)  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.



(d)  "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. [L 1991, c 118, pt of §1]