Article 3 — Negotiable Instruments · Section 3-204
This section addresses the issue of indorsement of negotiable instruments under the Uniform Commercial Code.
Source: U.C.C. § 3-204
UCC § 3-204 addresses the methods of indorsement necessary for negotiable instruments, stating that a signature is sufficient for indorsement unless otherwise noted.
UCC § 3-204 outlines the requirements for indorsing negotiable instruments. Essentially, it specifies how a party can legally transfer their rights in the instrument to another party through indorsement.
A signature or equivalent mark placed on a negotiable instrument that allows for its transfer to another party.
A signed document that promises a specific amount of money to the holder, which can be transferred to others.
Example 1
A check signed at the back by the payee to allow a third party to cash it.
Example 2
A promissory note is signed by the maker and then indorsed to a creditor.