70A-3-205 - Special indorsement -- Blank indorsement -- Anomalous indorsement.
70A-3-205. Special indorsement -- Blank indorsement -- Anomalous indorsement.
(1) If an indorsement is made by the holder of an instrument, whether payable to anidentified person or payable to bearer, and the indorsement identifies a person to whom it makesthe instrument payable, it is a "special indorsement." When specially indorsed, an instrumentbecomes payable to the identified person and may be negotiated only by the indorsement of thatperson. The principles stated in Section 70A-3-110 apply to special indorsements.
(2) If an indorsement is made by the holder of an instrument and it is not a specialindorsement, it is a "blank indorsement." When indorsed in blank, an instrument becomes payableto bearer and may be negotiated by transfer of possession alone until specially indorsed.
(3) The holder may convert a blank indorsement that consists only of a signature into aspecial indorsement by writing, above the signature of the indorser, words identifying the personto whom the instrument is made payable.
(4) "Anomalous indorsement" means an indorsement made by a person who is not theholder of the instrument. An anomalous indorsement does not affect the manner in which theinstrument may be negotiated.
Repealed and Re-enacted by Chapter 237, 1993 General Session