(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.
(b) An indorsement purporting to be only part of a security certificate representing
units intended by the issuer to be separately transferable is effective to the extent
of the indorsement.
(c) 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.
(d) If a security certificate in registered form has been delivered to a purchaser
without a necessary 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.
(e) An indorsement of a security certificate in bearer form may give notice of an
adverse claim to the certificate, but it does not otherwise affect a right to registration
that the holder possesses.
(f) Unless otherwise agreed, a person making an indorsement assumes only the obligations
provided in G.S. 25-8-108 and not an obligation that the security will be honored by the issuer.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.