70A-3-204 - Indorsement.
70A-3-204. Indorsement.
(1) "Indorsement" means a signature, other than that of a signer as maker, drawer, oracceptor, that alone or accompanied by other words is made on an instrument for the purpose ofnegotiating the instrument, restricting payment of the instrument, or incurring indorser's liabilityon the instrument, but regardless of the intent of the signer, a signature and its accompanyingwords is an indorsement unless the accompanying words, terms of the instrument, place of thesignature, or other circumstances unambiguously indicate that the signature was made for apurpose other than indorsement. For the purpose of determining whether a signature is made onan instrument, a paper affixed to the instrument is a part of the instrument.
(2) "Indorser" means a person who makes an indorsement.
(3) For the purpose of determining whether the transferee of an instrument is a holder, anindorsement that transfers a security interest in the instrument is effective as an unqualifiedindorsement of the instrument.
(4) If an instrument is payable to a holder under a name that is not the name of the holder,indorsement may be made by the holder in the name stated in the instrument or in the holder'sname or both, but signature in both names may be required by a person paying or taking theinstrument for value or collection.
Repealed and Re-enacted by Chapter 237, 1993 General Session