Indorsement

Indorsement.

(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 of 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 Section 8-108 of this title

and not an obligation that the security will be honored by the

issuer.