8.8A-304 - A-304. Endorsement. - Virginia Statutes

§ 8.8A-304. Endorsement.

(a) An endorsement may be in blank or special. An endorsement in blankincludes an endorsement to bearer. A special endorsement specifies to whom asecurity is to be transferred or who has power to transfer it. A holder mayconvert a blank endorsement to a special endorsement.

(b) An endorsement purporting to be only of part of a security certificaterepresenting units intended by the issuer to be separately transferable iseffective to the extent of the endorsement.

(c) An endorsement, whether special or in blank, does not constitute atransfer until delivery of the certificate on which it appears or, if theendorsement is on a separate document, until delivery of both the documentand the certificate.

(d) If a security certificate in registered form has been delivered to apurchaser without a necessary endorsement, the purchaser may become aprotected purchaser only when the endorsement is supplied. However, against atransferor, a transfer is complete upon delivery and the purchaser has aspecifically enforceable right to have any necessary endorsement supplied.

(e) An endorsement of a security certificate in bearer form may give noticeof an adverse claim to the certificate, but it does not otherwise affect aright to registration that the holder possesses.

(f) Unless otherwise agreed, a person making an endorsement assumes only theobligations provided in § 8.8A-108 and not an obligation that the securitywill be honored by the issuer.

(1996, c. 216.)