(a) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement.
An indorsement purporting to be only of part of a security certificate representingunits intended by the issuer to be separately transferable is effective to the extent of the indorsement.
An indorsement, whether special or in blank, does not constitute a transfer until delivery of the certificate on which it appears or, if the indorsement is on a separate document, until delivery of both the document and the certificate.
If a security certificate in registered form has been delivered to a purchaser without anecessary indorsement, the purchaser may become a protected purchaser only when the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforceable right to have any necessary indorsement supplied.
An indorsement of a security certificate in bearer form may give notice of an adverseclaim to the certificate, but it does not otherwise affect a right to registration that the holder possesses.
Unless otherwise agreed, a person making an indorsement assumes only the obligations provided in section 4-8-108 and not an obligation that the security will be honored by the issuer.
Source: L. 96: Entire article R&RE, p. 221, § 2, effective July 1.
Editor's note: This section is similar to former §§ 4-8-307, 4-8-308, 4-8-309, and 4-8310 as they existed prior to 1996.