§ 26-1-3.1-204 — Endorsement

Indiana § 26-1-3.1-204

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(a) "Endorsement" 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:
(1) negotiating the instrument;
(2) restricting payment of the instrument; or
(3) incurring endorser's liability on the instrument;
but regardless of the intent of the signer, a signature and its
accompanying words is an endorsement 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 endorsement. 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) "Endorser" means a person who makes an endorsement.
(c) For the purpose of determining whether the transferee of an
instrument is a holder, an endorsement that transfers a security interest
in the instrument is effective as an unqualified endorsement of the
instrument.
(d) If an instrument is payable to a holder under a name that is not
the name of the holder, endorsement 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

As added by P.L.222-1993, SEC.5.