# ORS § 78.3040: 78.3040 Indorsement

> Oregon · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.3040

## Section

- **Citation:** ORS § 78.3040
- **Heading:** 78.3040 Indorsement
- **Jurisdiction:** Oregon
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** OR Code / Title 8 / Chapter 78 / Section 78.3040

## Text

(1) 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.

(2) 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.

(3) 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.

(4) 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.

(5) 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.

(6) Unless otherwise agreed, a person making an indorsement assumes only the obligations imposed by ORS 78.1080 (Warranties in direct holding) and not an obligation that the security will be honored by the issuer. [1961 c.726 § 78.3040 (Indorsement) ; 1985 c.676 § 78.3040 (Indorsement) ; 1995 c.328 §30]

Source: Section 78.3040 — Indorsement , https://www.­oregonlegislature.­gov/bills_laws/ors/ors078.­html (accessed May 26, 2025).

## Nearby sections

- [ORS § 78.1010 78.1010 Short title](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1010.md)
- [ORS § 78.1020 78.1020 Definitions and index of definitions](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1020.md)
- [ORS § 78.1030 78.1030 Rules for determining whether certain obligations and interests are securities or financial assets](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1030.md)
- [ORS § 78.1040 78.1040 Acquisition of security or financial asset or interest therein](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1040.md)
- [ORS § 78.1050 78.1050 Notice of adverse claim](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1050.md)
- [ORS § 78.1060 78.1060 Control](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1060.md)
- [ORS § 78.1070 78.1070 Whether indorsement, instruction or entitlement order is effective](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1070.md)
- [ORS § 78.1080 78.1080 Warranties in direct holding](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1080.md)
- [ORS § 78.1090 78.1090 Warranties in indirect holding](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1090.md)
- [ORS § 78.1100 78.1100 Applicability](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1100.md)
- [ORS § 78.1110 78.1110 Clearing corporation rules](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1110.md)
- [ORS § 78.1120 78.1120 Creditor’s legal process](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1120.md)
- [ORS § 78.1130 78.1130 Statute of frauds inapplicable](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1130.md)
- [ORS § 78.1140 78.1140 Evidentiary rules concerning certificated securities](https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.1140.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_OR_T8_C78_S78.3040. Check the current official text before relying on it. Not legal advice.