Hwang Bankruptcy Case – California Commercial Code Section 3204

This code Section is to be used for an article we are publishing on the Hwang Bankruptcy case:

California Commercial Code 3204.  (a) "Indorsement" means a signature, other than that of a
signer as maker, drawer, or acceptor, that alone or accompanied by
other words is made on an instrument for the purpose of (1)
negotiating the instrument, (2) restricting payment of the
instrument, or (3) incurring indorser's liability on the instrument,
but regardless of the intent of the signer, a signature and its
accompanying words is an indorsement unless the accompanying words,
terms of the instrument, place of the signature, or other
circumstances unambiguously indicate that the signature was made for
a purpose other than indorsement. For the purpose of determining
whether a signature is made on an instrument, a paper affixed to the
instrument is a part of the instrument.

   (b) "Indorser" means a person who makes an indorsement.
   (c) For the purpose of determining whether the transferee of an
instrument is a holder, an indorsement that transfers a security
interest in the instrument is effective as an unqualified indorsement
of the instrument.
   (d) If an instrument is payable to a holder under a name that is
not the name of the holder, indorsement may be made by the holder in
the name stated in the instrument or in the holder's name or both,
but signature in both names may be required by a person paying or
taking the instrument for value or collection.