§ 34.1-3-205 — Special indorsement; blank indorsement; anomalous indorsement

(a) If an indorsement is made by the holder of an
instrument, whether payable to an identified person or payable
to bearer, and the indorsement identifies a person to whom it
makes the instrument payable, it is a "special indorsement."
When specially indorsed, an instrument becomes payable to the
identified person and may be negotiated only by the indorsement
of that person. The principles stated in section 34.1-3-110
apply to special indorsements.
(b) If an indorsement is made by the holder of an
instrument and it is not a special indorsement, it is a "blank
indorsement." When indorsed in blank, an instrument becomes
payable to bearer and may be negotiated by transfer of
possession alone until specially indorsed.
(c) The holder may convert a blank indorsement that
consists only of a signature into a special indorsement by
writing, above the signature of the indorser, words identifying
the person to whom the instrument is made payable.
(d) "Anomalous indorsement" means an indorsement made by a
person who is not the holder of the instrument. An anomalous
indorsement does not affect the manner in which the instrument
may be negotiated.