§ 6A-8-304 - Indorsement.
SECTION 6A-8-304
§ 6A-8-304 Indorsement. – (a) An indorsement may be in blank or special. An indorsement in blank includesan indorsement to bearer. A special indorsement specifies to whom a security isto be transferred or who has power to transfer it. A holder may convert a blankindorsement to a special indorsement.
(b) An indorsement purporting to be only of part of asecurity certificate representing units intended by the issuer to be separatelytransferable is effective to the extent of the indorsement.
(c) An indorsement, whether special or in blank, does notconstitute a transfer until delivery of the certificate on which it appears or,if the indorsement is on a separate document, until delivery of both thedocument and the certificate.
(d) If a security certificate in registered form has beendelivered to a purchaser without a necessary indorsement, the purchaser maybecome a protected purchaser only when the indorsement is supplied. However,against a transferor, a transfer is complete upon delivery and the purchaserhas a specifically enforceable right to have any necessary indorsement supplied.
(e) An indorsement of a security certificate in bearer formmay give notice of an adverse claim to the certificate, but it does nototherwise affect a right to registration that the holder possesses.
(f) Unless otherwise agreed, a person making an indorsementassumes only the obligations provided in § 6A-8-108 and not an obligationthat the security will be honored by the issuer.