§ 6A-3-204 - Indorsement. - Rhode Island Statutes

SECTION 6A-3-204

   § 6A-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 aninstrument for the purpose of (i) negotiating the instrument, (ii) restrictingpayment of the instrument, or (iii) incurring indorser's liability on theinstrument, but regardless of the intent of the signer, a signature and itsaccompanying words is an indorsement unless the accompanying words, terms ofthe instrument, place of the signature, or other circumstances unambiguouslyindicate that the signature was made for a purpose other than indorsement. Forthe purpose of determining whether a signature is made on an instrument, apaper affixed to the instrument is a part of the instrument.

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

   (c) For the purpose of determining whether the transferee ofan instrument is a holder, an indorsement that transfers a security interest inthe instrument is effective as an unqualified indorsement of the instrument.

   (d) If an instrument is payable to a holder under a name thatis not the name of the holder, indorsement may be made by the holder in thename stated in the instrument or in the holder's name or both, but signature inboth names may be required by a person paying or taking the instrument forvalue or collection.