554.3205 Special endorsement — blank endorsement — anomalous endorsement. 1. If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whomit makes the instrument payable, it is a 'special endorsement.' When specially endorsed,an instrument becomes payable to the identified person and may be negotiated only bythe endorsement of that person. The principles stated in section 554.3110 apply to specialendorsements. 2. If an endorsement is made by the holder of an instrument and it is not a special endorsement, it is a 'blank endorsement.' When endorsed in blank, an instrument becomespayable to bearer and may be negotiated by transfer of possession alone until speciallyendorsed. 3. The holder may convert a blank endorsement that consists only of a signature into a special endorsement by writing, above the signature of the endorser, words identifying theperson to whom the instrument is made payable. 4. 'Anomalous endorsement' means an endorsement made by a person who is not the holder of the instrument. ignature of the endorser, words identifying theperson to whom the instrument is made payable. 4. 'Anomalous endorsement' means an endorsement made by a person who is not the holder of the instrument. An anomalous endorsement does not affect the manner in whichthe instrument may be negotiated. 94 Acts, ch 1167, §33, 121, 122Referred to in §554.3103, 554.3109 Sat Dec 23 01:56:00 2023 Iowa Code 2024, Section 554.3205 (24, 0)
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