§ 25-3-205. Special indorsement; blank indorsement; anomalous indorsement. - North Carolina Statutes

§25‑3‑205.  Special indorsement; blank indorsement; anomalousindorsement.

(a)        If an indorsementis made by the holder of an instrument, whether payable to an identified personor payable to bearer, and the indorsement identifies a person to whom it makesthe instrument payable, it is a "special indorsement". When speciallyindorsed, an instrument becomes payable to the identified person and may benegotiated only by the indorsement of that person. The principles stated inG.S. 25‑3‑110 apply to special indorsements.

(b)        If an indorsementis made by the holder of an instrument and it is not a special indorsement, itis a "blank indorsement". When indorsed in blank, an instrumentbecomes payable to bearer and may be negotiated by transfer of possession aloneuntil specially indorsed.

(c)        The holder mayconvert a blank indorsement that consists only of a signature into a specialindorsement by writing, above the signature of the indorser, words identifyingthe person to whom the instrument is made payable.

(d)        "Anomalousindorsement" means an indorsement made by a person who is not the holderof the instrument. An anomalous indorsement does not affect the manner in whichthe instrument may be negotiated. (1899, c. 733, ss. 9, 33 to36, 40; Rev., ss. 2159, 2182 to  2185, 2189; C.S., ss. 2990, 3014 to 3017,3021; 1949, c. 953; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)