KRS 355.8-304: Indorsement.

(1) 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.

(2) 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.

(3) An indorsement, whether special or in bl ank, 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.

(4) If a security certificate in registered form has been d elivered 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 enforcea ble right to

have any necessary indorsement supplied.

(5) 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.

(6) Unless otherwise agreed, a person making an indorsement assumes only the

obligations provided in KRS 355.8 -108 and not an obligation that the security will

be honored by the issuer.