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 transferred or who has power to transfer it. A holder may convert a blank indorsement to a spe cial 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 the indorsement. (3) An indorsement, whether special or in bl ank, does not constitute a transfer until delivery of the certificate on which it appears or, if the indorsement is on a separate document, until delivery of both the document and the certificate. (4) If a security certificate in registered form has been d elivered to a purchaser without a necessary indorsement, the purchaser may become a protected purchaser only when the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforcea ble right to have any necessary indorsement supplied. en the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforcea ble right to 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 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 be honored by the issuer. Effective: January 1, 1997 History: Repealed and reenacted 1996 Ky.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 1958 Ky. Acts ch. 77, sec. 8 -304.
Kentucky Legal Code