Illinois General Assembly - Illinois Compiled Statutes

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810 ILCS 5/3-204

(810 ILCS 5/3-204) (from Ch. 26, par. 3-204)

Sec. 3-204.

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.

(Source: P.A. 87-582; 87-1135.)