New Jersey § 12a:8-304

§ 12a:8-304.

a. An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has

power to transfer it. A holder may convert a blank indorsement to a special indorsement. b. An indorsement purporting to be only of part of a security certificate representing

units intended by the issuer to be separately transferable is effective to the extent

of the indorsement. c. An indorsement, whether special or in blank, does not constitute a transfer until

delivery of the certificate on which it appears or, if the indorsement is on a separate

document, until delivery of both the document and the certificate. d. If a security certificate in registered form has been delivered to a purchaser

without a necessary indorsement, the purchaser may become a protected purchaser only

when the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser

has a specifically enforceable right to have any necessary indorsement supplied. e. An indorsement of a security certificate in bearer form may give notice of an adverse

claim to the certificate, but it does not otherwise affect a right to registration

that the holder possesses. f. Unless otherwise agreed, a person making an indorsement assumes only the obligations

provided in 12A:8-108 and not an obligation that the security will be honored by the

issuer.