# S.D. Codified Laws § 57A-8-304: Indorsement

> South Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-304

## Section

- **Citation:** S.D. Codified Laws § 57A-8-304
- **Heading:** Indorsement
- **Jurisdiction:** South Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SD Code / Title 57A / Chapter 8 / Section 57A-8-304

## Text

(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 § 57A-8-108 and not an obligation that the security will be honored by the issuer.

Source: SL 1998, ch 284, § 1.

## Nearby sections

- [S.D. Codified Laws § 57A-8-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-101.md)
- [S.D. Codified Laws § 57A-8-102 Definitions and index of definitions](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-102.md)
- [S.D. Codified Laws § 57A-8-103 Rules for determining whether certain obligations and interests are securities or financial assets](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-103.md)
- [S.D. Codified Laws § 57A-8-104 Acquisition of security or financial asset or interest therein](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-104.md)
- [S.D. Codified Laws § 57A-8-105 Notice of adverse claim](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-105.md)
- [S.D. Codified Laws § 57A-8-106 Control](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-106.md)
- [S.D. Codified Laws § 57A-8-107 Whether endorsement, instruction, or entitlement order is effective](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-107.md)
- [S.D. Codified Laws § 57A-8-108 Warranties in direct holding](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-108.md)
- [S.D. Codified Laws § 57A-8-109 Warranties in indirect holding](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-109.md)
- [S.D. Codified Laws § 57A-8-110 Applicability--Choice of law](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-110.md)
- [S.D. Codified Laws § 57A-8-111 Clearing corporation rules](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-111.md)
- [S.D. Codified Laws § 57A-8-112 Creditor's legal process](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-112.md)
- [S.D. Codified Laws § 57A-8-113 Statute of frauds inapplicable](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-113.md)
- [S.D. Codified Laws § 57A-8-114 Evidentiary rules concerning certificated securities](https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_T57A_C8_S57A-8-304. Check the current official text before relying on it. Not legal advice.