(a) 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 Section 7-3-110 apply to special indorsements.
(b) 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.
(c) 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.
(d) “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.
(Acts 1995, No. 95-668, p. 1381, §1.)
Notes of Decisions
Summerlin v. Shellpoint Mortg. Servs., 165 F. Supp. 3d 1099 (N.D. Ala. 2016).
· cites it 4× “(citing Ala. Code § 7-3-205 (b)). “Possession of a note payable to order and indorsed in blank is prima facie evidence of ownership.”
Thomas v. Wells Fargo Bank, N.A., 116 So. 3d 226 (Ala. Civ. App. 2012).
· cites it 2× “” Ala. Code 1975, § 7-3-205(b). Possession of a note payable to order and indorsed in blank is prima facie evidence of ownership.”
Perry v. Fed. Nat'l Mortg. Ass'n, 100 So. 3d 1090 (Ala. Civ. App. 2012).
· cites it 2× “See Ala.Code 1975, § 7-3-205(b) (“When indorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.”
Graveling v. BankUnited N.A., 970 F. Supp. 2d 1243 (N.D. Ala. 2013).
· cites it 2× “” Ala.Code § 7-3-205(b). Possession of a note payable to order and endorsed in blank is prima facie evidence of ownership.”
Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012).
“§ 7-3-205(b). Because the Note was endorsed in blank and without special endorsement, it was negotiable by transfer of possession alone.”
— Ala. Code § 7-3-205(b) — 5 cases
Thomas v. Wells Fargo Bank, N.A., 116 So. 3d 226 (Ala. Civ. App. 2012).
“” Ala. Code 1975, § 7-3-205(b). Possession of a note payable to order and indorsed in blank is prima facie evidence of ownership.”
Perry v. Fed. Nat'l Mortg. Ass'n, 100 So. 3d 1090 (Ala. Civ. App. 2012).
“See Ala.Code 1975, § 7-3-205(b) (“When indorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.”
Graveling v. BankUnited N.A., 970 F. Supp. 2d 1243 (N.D. Ala. 2013).
“” Ala.Code § 7-3-205(b). Possession of a note payable to order and endorsed in blank is prima facie evidence of ownership.”
Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012).
“§ 7-3-205(b). Because the Note was endorsed in blank and without special endorsement, it was negotiable by transfer of possession alone.”
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