§ 41-08-30 — (8-304) Endorsement

1. 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.
2. 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.

3. 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.
4. 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.
5. 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.
6. Unless otherwise agreed, a person making an endorsement assumes only the
obligations provided in section 41-08-08 and not an obligation that the security will be
honored by the issuer.