Vermont § 205 - § 3—205.

§ 205. § 3—205.

• Special indorsement; blank indorsement; anomalous indorsement (a) If an indorsement is made by the holder of an instrument, whether payable to an identified
  person or payable to bearer, and the indorsement identifies a person to whom it makes
  the instrument payable, it is a “special indorsement.” When specially indorsed, an
  instrument becomes payable to the identified person and may be negotiated only by
  the indorsement of that person. The principles stated in section 3—110 of this title apply to special indorsements. (b) If an indorsement is made by the holder of an instrument and it is not a special indorsement,
  it is a “blank indorsement.” When indorsed in blank, an instrument becomes payable
  to bearer and may be negotiated by transfer of possession alone until specially indorsed. (c) The holder may convert a blank indorsement that consists only of a signature into
  a special indorsement by writing, above the signature of the indorser, words identifying
  the person to whom the instrument is made payable. (d) “Anomalous indorsement” means an indorsement made by a person who is not the holder
  of the instrument. An anomalous indorsement does not affect the manner in which the
  instrument may be negotiated. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)