§ 4-3-204 — Indorsement

Colorado § 4-3-204

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Negotiable Instruments

Text

(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 (i) negotiating the instrument, (ii)
restricting payment of the instrument, or (iii) incurring 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.

Legislative History

Source: L. 94: Entire article R&RE, p. 851, � 1, effective January 1, 1995.