# S.C. Code Ann. § 36-8-107: SECTION 36-8-107. Whether indorsement, instruction, or entitlement order is effective

> South Carolina · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-107

## Section

- **Citation:** S.C. Code Ann. § 36-8-107
- **Heading:** SECTION 36-8-107. Whether indorsement, instruction, or entitlement order is effective
- **Jurisdiction:** South Carolina
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SC Code / Title 36 / Chapter 8 / Section 36-8-107

## Text

(a) "Appropriate person" means: (1) with respect to an indorsement, the person specified by a security certificate or by an effective special indorsement 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 item (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 item (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 indorsement, 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 Section 36-8-106(c)(2) or (d)(2); or (3) the appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness. (c) An indorsement, 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 indorsement, 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 indorsed 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 indorsement, 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 indorsement, instruction, or entitlement order is determined as of the date the indorsement, instruction, or entitlement order is made, and an indorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances.

## Nearby sections

- [S.C. Code Ann. § 36-8-101 SECTION 36-8-101. Short title.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-101.md)
- [S.C. Code Ann. § 36-8-102 SECTION 36-8-102. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-102.md)
- [S.C. Code Ann. § 36-8-103 SECTION 36-8-103. Rules for determining whether certain obligations and interests are securities or financial assets.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-103.md)
- [S.C. Code Ann. § 36-8-104 SECTION 36-8-104. Acquisition of security or financial asset or interest therein.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-104.md)
- [S.C. Code Ann. § 36-8-105 SECTION 36-8-105. Notice of adverse claim.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-105.md)
- [S.C. Code Ann. § 36-8-106 SECTION 36-8-106. Control.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-106.md)
- [S.C. Code Ann. § 36-8-107 SECTION 36-8-107. Whether indorsement, instruction, or entitlement order is effective.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-107.md)
- [S.C. Code Ann. § 36-8-108 SECTION 36-8-108. Warranties in direct holding.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-108.md)
- [S.C. Code Ann. § 36-8-109 SECTION 36-8-109. Warranties in indirect holding.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-109.md)
- [S.C. Code Ann. § 36-8-110 SECTION 36-8-110. Applicability; choice of law.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-110.md)
- [S.C. Code Ann. § 36-8-111 SECTION 36-8-111. Clearing corporation rules.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-111.md)
- [S.C. Code Ann. § 36-8-112 SECTION 36-8-112. Creditor's legal process.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-112.md)
- [S.C. Code Ann. § 36-8-113 SECTION 36-8-113. Statute of frauds inapplicable.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-113.md)
- [S.C. Code Ann. § 36-8-114 SECTION 36-8-114. Evidentiary rules concerning certificated securities.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SC_T36_C8_S36-8-107. Check the current official text before relying on it. Not legal advice.