§ 26-1-3.1-205 — Special endorsement; blank endorsement; anomalous endorsement

Indiana § 26-1-3.1-205

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

Text

(a) If an endorsement is made by the
holder of an instrument, whether payable to an identified person or
payable to bearer, and the endorsement identifies a person to whom it
makes the instrument payable, it is a "special endorsement". When
specially endorsed, an instrument becomes payable to the identified
person and may be negotiated only by the endorsement of that person.
The principles stated in IC 26-1-3.1-110 apply to special endorsements.
(b) If an endorsement is made by the holder of an instrument and it
is not a special endorsement, it is a "blank endorsement". When
endorsed in blank, an instrument becomes payable to bearer and may
be negotiated by transfer of possession alone until specially endorsed.
(c) The holder may convert a blank endorsement that consists only
of a signature into a special endorsement by writing, above the
signature of the endorser, words identifying the person to whom the
instrument is made payable.
(d) "Anomalous endorsement" means an endorsement made by a
person who is not the holder of the instrument. An anomalous
endorsement does not affect the manner in which the instrument may
be negotiated.

Legislative History

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