8.3A-205 - A-205. Special endorsement; blank endorsement; anomalous endorsement. - Virginia Statutes

§ 8.3A-205. Special endorsement; blank endorsement; anomalous endorsement.

(a) If an endorsement is made by the holder of an instrument, whether payableto an identified person or payable to bearer, and the endorsement identifiesa person to whom it makes the instrument payable, it is a "specialendorsement." When specially endorsed, an instrument becomes payable to theidentified person and may be negotiated only by the endorsement of thatperson. The principles stated in § 8.3A-110 apply to special endorsements.

(b) If an endorsement is made by the holder of an instrument and it is not aspecial endorsement, it is a "blank endorsement." When endorsed in blank,an instrument becomes payable to bearer and may be negotiated by transfer ofpossession alone until specially endorsed.

(c) The holder may convert a blank endorsement that consists only of asignature into a special endorsement by writing, above the signature of theendorser, words identifying the person to whom the instrument is made payable.

(d) "Anomalous endorsement" means an endorsement made by a person who isnot the holder of the instrument. An anomalous endorsement does not affectthe manner in which the instrument may be negotiated.

(Code 1950, §§ 6-361, 6-385 through 6-388, 6-392; 1956, c. 149; 1964, c. 219,§§ 8.3-111, 8.3-204; 1992, c. 693.)