§ 26-1-8.1-304 — Endorsement of securities

Indiana § 26-1-8.1-304

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 8.1: Investment Securities

Text

(a) An endorsement may be in blank or
special. An endorsement in blank includes an endorsement to bearer.
A special endorsement specifies to whom a security is to be transferred
or who has power to transfer it. A holder may convert a blank
endorsement to a special endorsement.
(b) An endorsement purporting to be only of part of a security
certificate representing units intended by the issuer to be separately
transferable is effective to the extent of the endorsement.
(c) An endorsement, whether special or in blank, does not constitute
a transfer until delivery of the certificate on which it appears or, if the
endorsement is on a separate document, until delivery of both the
document and the certificate.
(d) If a security certificate in registered form has been delivered to
a purchaser without a necessary endorsement, the purchaser may
become a protected purchaser only when the endorsement is supplied.
However, against a transferor, a transfer is complete upon delivery and
the purchaser has a specifically enforceable right to have any necessary
endorsement supplied.
(e) An endorsement of a security certificate in bearer form may give
notice of an adverse claim to the certificate, but it does not otherwise
affect a right to registration that the holder possesses.
(f) Unless otherwise agreed, a person making an endorsement
assumes only the obligations provided in IC 26-1-8.1-108 and not an
obligation that the security will be honored by the issuer.

Legislative History

As added by P.L.247-1995, SEC.10.