# Ind. Code § 26-1-8.1-107: Effectiveness of endorsement, instruction, or entitlement order > Indiana · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-107 ## Section - **Citation:** Ind. Code § 26-1-8.1-107 - **Heading:** Effectiveness of endorsement, instruction, or entitlement order - **Jurisdiction:** Indiana - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-107 ## Text Sec. 107. (a) "Appropriate person" means: (1) with respect to an endorsement, the person specified by a security certificate or by an effective special endorsement to be entitled to the security; (2) with respect to an instruction, the registered owner of an uncertificated security; (3) with respect to an entitlement order, the entitlement holder; (4) if the person designated in subdivision (1), (2), or (3) is deceased, the designated person's successor taking under other law or the designated person's personal representative acting for the estate of the decedent; or (5) if the person designated in subdivision (1), (2), or (3) lacks capacity, the designated person's guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset. (b) An endorsement, instruction, or entitlement order is effective if: (1) it is made by the appropriate person; (2) it is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under IC 26-1-8.1-106(c)(2) or IC 26-1-8.1-106(d)(2); or (3) the appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness. (c) An endorsement, instruction, or entitlement order made by a representative is effective even if: (1) the representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction of the representative relationship, including any law requiring the representative to obtain court approval of the transaction; or (2) the representative's action in making the endorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach of duty. (d) If a security is registered in the name of or specially endorsed to a person described as a representative, or if a securities account is maintained in the name of a person described as a representative, an endorsement, instruction, or entitlement order made by the person is effective even though the person is no longer serving in the described capacity. (e) Effectiveness of an endorsement, instruction, or entitlement order is determined as of the date the endorsement, instruction, or entitlement order is made, and an endorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances. As added by P.L.247-1995, SEC.10. ## Nearby sections - [Ind. Code § 26-1-8.1-0.1 Effect of enactment of chapter](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-0.1.md) - [Ind. Code § 26-1-8.1-0.3 Perfection of certain security interests; continuation of perfection](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-0.3.md) - [Ind. Code § 26-1-8.1-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-101.md) - [Ind. Code § 26-1-8.1-102 Definitions and index of definitions; principles of construction and interpretation; characterization of person, business, or transaction](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-102.md) - [Ind. Code § 26-1-8.1-103 Classification as security or financial asset](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-103.md) - [Ind. Code § 26-1-8.1-104 Acquisition of a security or financial asset](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-104.md) - [Ind. Code § 26-1-8.1-105 Notice of adverse claim](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-105.md) - [Ind. Code § 26-1-8.1-106 Control by purchaser; certificated security, uncertificated security, or security entitlement; agreement by issuer or securities intermediary to comply with purchaser's orders or instructions](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-106.md) - [Ind. Code § 26-1-8.1-107 Effectiveness of endorsement, instruction, or entitlement order](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-107.md) - [Ind. Code § 26-1-8.1-108 Warranties upon purchase or transfer of security](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-108.md) - [Ind. Code § 26-1-8.1-109 Warranties made by and to a securities intermediary](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-109.md) - [Ind. Code § 26-1-8.1-110 Governing local law; determination of jurisdiction of issuer or securities intermediary](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-110.md) - [Ind. Code § 26-1-8.1-111 Applicability of rules adopted by clearing corporations](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-111.md) - [Ind. Code § 26-1-8.1-112 Creditor access to debtor's interest in a security](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-112.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-107. Check the current official text before relying on it. Not legal advice.