Hwang Bankruptcy Case – California Commercial Code Section 3205

This code section is to be used for an article we are publishing on the Hwang Bankruptcy Case in California (Motion for relief from automatic stay in a bankruptcy case).

3205.  (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 3110 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
who is not the holder of the instrument. An anomalous indorsement
does not affect the manner in which the instrument may be negotiated.