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Can you summarize IACO 554.3204?
UNIFORM COMMERCIAL CODE > Endorsement.
Short Summary
This legal document defines and explains the concept of endorsement in the context of negotiable instruments. An endorsement refers to a signature, other than that of the maker, drawer, or acceptor, made on an instrument for the purpose of negotiating the instrument, restricting payment, or incurring liability. The document clarifies that a signature and its accompanying words are considered an endorsement, unless there are unambiguous indications that the signature was made for a purpose other than endorsement. The document also defines an endorser as a person who makes an endorsement. Additionally, it states that an endorsement that transfers a security interest in the instrument is effective as an unqualified endorsement. Furthermore, it allows the holder of an instrument payable under a name that is not their own to make an endorsement in the name stated in the instrument or in their own name, or both. However, a person paying or taking the instrument for value or collection may require a signature in both names. This legal document is referenced in Section 554.3103 of the Iowa Code, under the Commerce section, specifically the Uniform Commercial Code.
Whom does it apply to?
Persons involved in negotiating or incurring liability on an instrument
What does it govern?
Endorsement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa