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Can you summarize NHRS 382-A:3-204?
UNIFORM COMMERCIAL CODE > Indorsement.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, defines and explains the concept of indorsement. Indorsement refers to a signature made on an instrument for the purpose of negotiating the instrument, restricting payment, or incurring indorser’s liability. The document clarifies that a signature and its accompanying words are considered an indorsement unless there are clear indications that the signature was made for a different purpose. It also defines an indorser as a person who makes an indorsement. Additionally, the document states that an indorsement that transfers a security interest in the instrument is effective as an unqualified indorsement. It further explains that if an instrument is payable to a holder under a name that is not the holder’s name, indorsement may be made in the name stated in the instrument or in the holder’s name or both. However, a person paying or taking the instrument for value or collection may require a signature in both names. The document provides clarity on the interpretation and application of indorsement in commercial transactions.
Whom does it apply to?
Persons involved in negotiating or incurring liability on an instrument
What does it govern?
Indorsement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire