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<section article="gcl" article_name="Commercial Law" number="3-205" title_number="3" title_name="Negotiable Instruments" subtitle_number="2" subtitle_name="Negotiation, Transfer, and Indorsement">
  <level label="a">
    <text>If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, it is a “special indorsement”. When specially indorsed, an instrument becomes payable to the identified person and may be negotiated only by the indorsement of that person. The principles stated in § 3-110 apply to special indorsements.</text>
  </level>
  <level label="b">
    <text>If an indorsement is made by the holder of an instrument and it is not a special indorsement, it is a “blank indorsement”. When indorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.</text>
  </level>
  <level label="c">
    <text>The holder may convert a blank indorsement that consists only of a signature into a special indorsement by writing, above the signature of the indorser, words identifying the person to whom the instrument is made payable.</text>
  </level>
  <level label="d">
    <text>“Anomalous indorsement” means an indorsement made by a person who is not the holder of the instrument. An anomalous indorsement does not affect the manner in which the instrument may be negotiated.</text>
  </level>
</section>
