Special Indorsement; Blank Indorsement; Anomalous Indorsement

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Negotiable Instruments
  5. Negotiation, Transfer, and Indorsement
  6. Special Indorsement; Blank Indorsement; Anomalous Indorsement

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  1. 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 Code Section 11-3-110 apply to special indorsements.
  2. 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.
  3. 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.
  4. "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.

(Code 1981, §11-3-205, enacted by Ga. L. 1996, p. 1306, § 3.)

Cross references.

- Use of parol evidence to explain blank endorsements of negotiable paper, § 24-3-10.

JUDICIAL DECISIONS

Cited in Gerber & Gerber, P.C. v. Regions Bank, 266 Ga. App. 8, 596 S.E.2d 174 (2004); Consumer Solutions Fin. Servs. v. Heritage Bank, 300 Ga. App. 272, 684 S.E.2d 682 (2009).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, § 227, et seq.

C.J.S.

- 10 C.J.S., Bills and Notes, §§ 152, 153.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-205.

ALR.

- Undertaking of one who endorses a note without recourse, 2 A.L.R. 216; 91 A.L.R. 399.

Production of paper purporting to be endorsed in blank by payee or by a special endorsee, as prima facie evidence of plaintiff's title to the paper, 11 A.L.R. 952; 85 A.L.R. 304.

Endorsement of bill or note in form of guaranty of payment, 33 A.L.R. 97; 46 A.L.R. 1516.

Effect of assignment endorsed on back of commercial paper, 44 A.L.R. 1353.

Payment to, or endorsement by, indicated beneficiary of check purporting to be payable or endorsed to one person "for another," 61 A.L.R. 272.


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