Section 17 Special Endorsements and Endorsements in Blank

• Library: Commercial Law 2007

If an endorsement is made by the holder of an instrument, whether it is an order or bearer instrument, and the endorsement identifies a person to whom it makes the instrument payable, as contemplated in § 400.3-110 or § 400.3-205(a), RSMo 2000, in regard to endorsees, it is a “special endorsement.” Section 400.3-205(a); Natural Bridge Trust Co. v. Hannibal, 109 S.W.2d 901, 903 (Mo. App. E.D. 1937) (a note was specially endorsed when it was “payable to the order of Natural Bridge Trust Company”). When specially endorsed, an instrument becomes payable to the identified person and may be negotiated only by the endorsement of that person. Id.

If an endorsement is made by the holder of an instrument and it is not a special endorsement, it is a “‘blank’...