§ 25-3-204. Indorsement. - North Carolina Statutes

§25‑3‑204.  Indorsement.

(a)        "Indorsement"means a signature, other than that of a signer as maker, drawer, or acceptor,that alone or accompanied by other words is made on an instrument for thepurpose of (i) negotiating the instrument, (ii) restricting payment of theinstrument, or (iii) incurring indorser's liability on the instrument, butregardless of the intent of the signer, a signature and its accompanying wordsis an indorsement unless the accompanying words, terms of the instrument, placeof the signature, or other circumstances unambiguously indicate that thesignature was made for a purpose other than indorsement. For the purpose ofdetermining whether a signature is made on an instrument, a paper affixed tothe instrument is a part of the instrument.

(b)        "Indorser"means a person who makes an indorsement.

(c)        For the purpose ofdetermining whether the transferee of an instrument is a holder, an indorsementthat transfers a security interest in the instrument is effective as anunqualified indorsement of the instrument.

(d)        If an instrument ispayable to a holder under a name that is not the name of the holder,indorsement may be made by the holder in the name stated in the instrument orin the holder's name or both, but signature in both names may be required by aperson paying or taking the instrument for value or collection. (1899,c. 733, ss. 17, 27, 30‑32, 43, 49, 58, 63; Rev., ss. 1952, 2175, 2178,2179, 2181, 2192, 2198, 2207, 2212, 2341; C.S., ss. 2998, 3007, 3010, 3011,3013, 3024, 3030, 3039, 3044; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)