Conversion of indorsement in blank into indorsement in full
Full Text
Conversion of indorsement in blank into indorsement in full.—The holder of a negotiable instrument indorsed in blank may, without signing his own name, by writing above the indorser’s signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full; and the holder does not thereby incur the responsibility of an indorser.
Plain English Summary
Allows a holder of an instrument endorsed in blank to convert it into an endorsement in full by writing a payment direction above the signature, without incurring endorser liability.
Key Legal Elements
- Applies to negotiable instruments currently endorsed in blank
- The holder can write a direction to pay to a specific person above the existing signature
- Converts the blank endorsement into a full endorsement without requiring the holder's signature
- The holder does not incur any liability or responsibility as an endorser
Practical Note
Useful for safe transfer. By converting a blank endorsement into a full endorsement to a specific person (e.g., writing 'Pay X' above the prior signer's signature), the holder makes the instrument an order instrument. This prevents unauthorized persons from claiming or negotiating it, while keeping the holder free from endorser liability.
हिंदी पाठ
निरंक पृष्ठांकन को पूर्ण पृष्ठांकन में परिवर्तित करना।—निरंक रूप से पृष्ठांकित (indorsed in blank) परक्राम्य लिखत का धारक, अपने स्वयं के नाम पर हस्ताक्षर किए बिना, पृष्ठांकक के हस्ताक्षर के ऊपर किसी अन्य व्यक्ति को पृष्ठांकिती (indorsee) के रूप में भुगतान करने का निर्देश लिखकर, निरंक पृष्ठांकन को पूर्ण पृष्ठांकन में परिवर्तित कर सकता है; और धारक इससे पृष्ठांकक के रूप में कोई जिम्मेदारी नहीं उठाता है।