2009 Kentucky Revised Statutes
Article 8 Investment Securities
355.8.304 Indorsement.

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355.8-304 Indorsement. (1) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be <br>transferred or who has power to transfer it. A holder may convert a blank <br>indorsement to a special indorsement. (2) An indorsement purporting to be only of part of a security certificate representing units intended by the issuer to be separately transferable is effective to the extent of <br>the indorsement. (3) An indorsement, whether special or in blank, does not constitute a transfer until delivery of the certificate on which it appears or, if the indorsement is on a separate <br>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 a necessary indorsement, the purchaser may become a protected purchaser only <br>when the indorsement is supplied. However, against a transferor, a transfer is <br>complete upon delivery and the purchaser has a specifically enforceable right to <br>have any necessary indorsement supplied. (5) An indorsement of a security certificate in bearer form may give notice of an adverse claim to the certificate, but it does not otherwise affect a right to registration <br>that the holder possesses. (6) Unless otherwise agreed, a person making an indorsement assumes only the obligations provided in KRS 355.8-108 and not an obligation that the security will <br>be honored by the issuer. Effective: January 1, 1997 <br>History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 143, effective January 1, 1997. -- Amended 1986 Ky. Acts ch. 118, sec. 28, effective July 1, 1987. -- Created <br>1958 Ky. Acts ch. 77, sec. 8-304.
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