§ 41-03-23 — (3-204) Endorsement

1. "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 negotiating the instrument, restricting payment of the instrument, or
incurring endorser's liability on the instrument regardless of the intent of the signer, a
signature and its accompanying words is an endorsement unless the accompanying
words, the terms of the instrument, the 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.
2. "Endorser" means a person who makes an endorsement.
3. 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.
4. 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.