                                 CODE OF VIRGINIA

SPECIAL ENDORSEMENT; BLANK ENDORSEMENT; ANOMALOUS ENDORSEMENT (§ 8.3A-205)

a. If an endorsement is made by the holder of an instrument, whether payable to
an identified person or payable to bearer, and the endorsement identifies a
person to whom it makes the instrument payable, it is a &#8220;special
endorsement.&#8221; When specially endorsed, an instrument becomes payable to
the identified person and may be negotiated only by the endorsement of that
person. The principles stated in &#xA7; 8.3A-110 apply to special endorsements.

b. If an endorsement is made by the holder of an instrument and it is not a
special endorsement, it is a &#8220;blank endorsement.&#8221; When endorsed in
blank, an instrument becomes payable to bearer and may be negotiated by transfer
of possession alone until specially endorsed.

c. The holder may convert a blank endorsement that consists only of a signature
into a special endorsement by writing, above the signature of the endorser,
words identifying the person to whom the instrument is made payable.

d. &#8220;Anomalous endorsement&#8221; means an endorsement made by a person who
is not the holder of the instrument. An anomalous endorsement does not affect
the manner in which the instrument may be negotiated.

HISTORY: Code 1950, §§ 6-361, 6-385 through 6-388, 6-392; 1956, c. 149; 1964,
c. 219, §§ 8.3-111, 8.3-204; 1992, c. 693.