O.C.G.A. § 11-3-204 (2019)
Indorsement
(a) “Indorsement” means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of (i) negotiating the instrument; (ii) restricting payment of the instrument; or (iii) incurring indorser’s liability on the instrument; but regardless of the intent of the signer, a signature and its accompanying words is an indorsement unless the accompanying words, terms of the instrument, place of the signature, or other circumstances unambiguously indicate that the signature was made for a purpose other than indorsement. For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument.
(b) “Indorser” means a person who makes an indorsement.
(c) For the purpose of determining whether the transferee of an instrument is a holder, an indorsement that transfers a security interest in the instrument is effective as an unqualified indorsement of the instrument.
(d) If an instrument is payable to a holder under a name that is not the name of the holder, indorsement may be made by the holder in the name stated in the instrument or in the holder’s name or both, but signature in both names may be required by a person paying or taking the instrument for value or collection.
History
Code 1981, § 11-3-204, enacted by Ga. L. 1996, p. 1306, § 3.
Annotations
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory provisions, decisions under former Code Section 11-3-203 are included in the annotations for this Code section. Preferred endorsement. - Though this section permits endorsement in the true name alone, endorsement showing both names is preferred. Perini Corp. v. First Nat’l Bank, 553 F.2d 398, 1977 U.S. App. LEXIS 13115 (5th Cir. 1977) (decided under former Code 1933, §§ 3-405 and
4-205). Person operating business under trade name. - Under Georgia law, a person operating a business under trade name may endorse personally checks drawn to the operator under the operator’s trade name. Perini Corp. v. First Nat’l Bank, 553 F.2d 398, 1977 U.S. App. LEXIS 13115 (5th Cir. 1977) (decided under former Code 1933, §§ 3-405 and 4-205).
RESEARCH REFERENCES Am. Jur. 2d. 11 Am. Jur. 2d, Bills and Notes, § 221. C.J.S. 10 C.J.S., Bills and Notes, §§ 147, 149. U.L.A. Uniform Commercial Code (U.L.A.) § 3204.
ALR. Construction and application of provision of Negotiable Instruments Law regarding endorsement of instrument by payee or endorsee whose name is wrongly designated or misspelled, 153 A.L.R. 598.