§ 25-8-304. Indorsement. - North Carolina Statutes

§25‑8‑304.  Indorsement.

(a)        An indorsement maybe in blank or special. An indorsement in blank includes an indorsement tobearer. A special indorsement specifies to whom a security is to be transferredor who has power to transfer it. A holder may convert a blank indorsement to aspecial indorsement.

(b)        An indorsementpurporting to be only part of a security certificate representing unitsintended by the issuer to be separately transferable is effective to the extentof the indorsement.

(c)        An indorsement,whether special or in blank, does not constitute a transfer until delivery ofthe certificate on which it appears or, if the indorsement is on a separatedocument, until delivery of both the document and the certificate.

(d)        If a securitycertificate in registered form has been delivered to a purchaser without anecessary indorsement, the purchaser may become a protected purchaser only whenthe indorsement is supplied. However, against a transferor, a transfer iscomplete upon delivery and the purchaser has a specifically enforceable rightto have any necessary indorsement supplied.

(e)        An indorsement of asecurity certificate in bearer form may give notice of an adverse claim to thecertificate, but it does not otherwise affect a right to registration that theholder possesses.

(f)         Unless otherwiseagreed, a person making an indorsement assumes only the obligations provided inG.S. 25‑8‑108 and not an obligation that the security will behonored by the issuer. (1899, c. 733, ss. 37, 56; Rev., ss. 2186, 2205; C.S.,ss. 3018, 3037; 1965, c. 700, s. 1; 1989, c. 588, s. 1; 1997‑181, s. 1.)