70A-8-304 - Indorsement. - Utah Statutes

70A-8-304. Indorsement.
(1) An indorsement may be in blank or special. An indorsement in blank includes anindorsement to bearer. A special indorsement specifies to whom a security is to be transferred orwho has power to transfer it. A holder may convert a blank indorsement to a special indorsement.
(2) An indorsement purporting to be only of part of a security certificate representingunits intended by the issuer to be separately transferable is effective to the extent of theindorsement.
(3) An indorsement, whether special or in blank, does not constitute a transfer untildelivery 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.
(4) If a security certificate in registered form has been delivered to a purchaser without anecessary indorsement, the purchaser may become a protected purchaser only when theindorsement is supplied. However, against a transferor, a transfer is complete upon delivery andthe purchaser has a specifically enforceable right to have any necessary indorsement supplied.
(5) An indorsement of a security certificate in bearer form may give notice of an adverseclaim to the certificate, but it does not otherwise affect a right to registration that the holderpossesses.
(6) Unless otherwise agreed, a person making an indorsement assumes only theobligations provided in Section 70A-8-107 and not an obligation that the security will be honoredby the issuer.

Repealed and Re-enacted by Chapter 204, 1996 General Session