# Tex. Business & Commerce Code § 8.304: INDORSEMENT

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.304

## Section

- **Citation:** Tex. Business & Commerce Code § 8.304
- **Heading:** INDORSEMENT
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code bc / Chapter 8 / Section 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 on 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 and not an obligation that the security will be honored by the issuer.

## Nearby sections

- [Tex. Business & Commerce Code § 8.101 § 8.101. SHORT TITLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.101.md)
- [Tex. Business & Commerce Code § 8.102 § 8.102. DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.102.md)
- [Tex. Business & Commerce Code § 8.103 § 8.103. RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.103.md)
- [Tex. Business & Commerce Code § 8.104 § 8.104. ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.104.md)
- [Tex. Business & Commerce Code § 8.105 § 8.105. NOTICE OF ADVERSE CLAIM.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.105.md)
- [Tex. Business & Commerce Code § 8.106 § 8.106. CONTROL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.106.md)
- [Tex. Business & Commerce Code § 8.107 § 8.107. WHETHER INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS EFFECTIVE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.107.md)
- [Tex. Business & Commerce Code § 8.108 § 8.108. WARRANTIES IN DIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.108.md)
- [Tex. Business & Commerce Code § 8.109 § 8.109. WARRANTIES IN INDIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.109.md)
- [Tex. Business & Commerce Code § 8.110 § 8.110. APPLICABILITY; CHOICE OF LAW.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.110.md)
- [Tex. Business & Commerce Code § 8.111 § 8.111. CLEARING CORPORATION RULES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.111.md)
- [Tex. Business & Commerce Code § 8.112 § 8.112. CREDITOR'S LEGAL PROCESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.112.md)
- [Tex. Business & Commerce Code § 8.113 § 8.113. STATUTE OF FRAUDS INAPPLICABLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.113.md)
- [Tex. Business & Commerce Code § 8.114 § 8.114. EVIDENTIARY RULES CONCERNING CERTIFICATED SECURITIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.304. Check the current official text before relying on it. Not legal advice.