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84-3-204. Endorsement. (a) "Endorsement" 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 endorser's liability on the instrument, but regardless of the intent of the signer, a signature and its accompanying words is an endorsement 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 endorsement. 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) "Endorser" means a person who makes an endorsement.

(c) For the purpose of determining whether the transferee of an instrument is a holder, an endorsement that transfers a security interest in the instrument is effective as an unqualified endorsement of the instrument.

(d) If an instrument is payable to a holder under a name that is not the name of the holder, endorsement 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.

History: L. 1991, ch. 296, § 23; February 1, 1992.


This section is identical to the 1995 Official Text. Subsection (a) is a new provision, and subsections (b), (c) and (d) are derived from parts of former sections 84-3-201 and 84-3-202. Historical case and statutory references may be obtained from the 1965 and the 1983 bound Volume 7 of the Kansas Statutes Annotated.

Subsection (a). A full signature is presumed to be an indorsement, if it does not serve some other function on the instrument and if the writing does not contradict it. Anomalous indorsements, those that are out of the chain of title, will normally be considered to be for accommodation.

Subsection (c). This subsection validates the transfer of a security interest in an instrument, and the transferee may enforce the instrument. If the indebtedness secured is less than the face value of the instrument, the party called to pay should consider sending a notice of a right to defend under 84-3-119 or a third party complaint against any party who may be liable on the instrument.

Subsection (d). The subsection will make it possible to transfer and indorse instruments issued or indorsed to an erroneous name. Requiring a dual signature on such instruments will assure that the instrument appears to run to the proper persons, presenting a normal chain of title, and that the party actually meant to be liable on an instrument is identified and liable in that capacity.

Revisor's Note:

Former section 84-3-204 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.

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