Illinois General Assembly - Illinois Compiled Statutes

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810 ILCS 5/3-205

(810 ILCS 5/3-205) (from Ch. 26, par. 3-205)

Sec. 3-205.

Special indorsement; blank indorsement; anomalous indorsement.

(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 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 that
is not the holder of the instrument.  An anomalous indorsement does not
affect the manner in which the instrument may be negotiated.

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