70A-3-205 - Special indorsement -- Blank indorsement -- Anomalous indorsement.
70A-3-205. Special indorsement -- Blank indorsement -- Anomalous indorsement.
(1) If an indorsement is made by the holder of an instrument, whether payable to anidentified person or payable to bearer, and the indorsement identifies a person to whom it makesthe instrument payable, it is a "special indorsement." When specially indorsed, an instrumentbecomes payable to the identified person and may be negotiated only by the indorsement of thatperson. The principles stated in Section 70A-3-110 apply to special indorsements.
(2) If an indorsement is made by the holder of an instrument and it is not a specialindorsement, it is a "blank indorsement." When indorsed in blank, an instrument becomes payableto bearer and may be negotiated by transfer of possession alone until specially indorsed.
(3) The holder may convert a blank indorsement that consists only of a signature into aspecial indorsement by writing, above the signature of the indorser, words identifying the personto whom the instrument is made payable.
(4) "Anomalous indorsement" means an indorsement made by a person who is not theholder of the instrument. An anomalous indorsement does not affect the manner in which theinstrument may be negotiated.
(1) If an indorsement is made by the holder of an instrument, whether payable to anidentified person or payable to bearer, and the indorsement identifies a person to whom it makesthe instrument payable, it is a "special indorsement." When specially indorsed, an instrumentbecomes payable to the identified person and may be negotiated only by the indorsement of thatperson. The principles stated in Section 70A-3-110 apply to special indorsements.
(2) If an indorsement is made by the holder of an instrument and it is not a specialindorsement, it is a "blank indorsement." When indorsed in blank, an instrument becomes payableto bearer and may be negotiated by transfer of possession alone until specially indorsed.
(3) The holder may convert a blank indorsement that consists only of a signature into aspecial indorsement by writing, above the signature of the indorser, words identifying the personto whom the instrument is made payable.
(4) "Anomalous indorsement" means an indorsement made by a person who is not theholder of the instrument. An anomalous indorsement does not affect the manner in which theinstrument may be negotiated.
Repealed and Re-enacted by Chapter 237, 1993 General Session