{"data":{"id":"us-al/ala.-code-7-3-205","jurisdiction":"us-al","citation":"Ala. Code § 7-3-205","heading":"Special Indorsement; Blank Indorsement; Anomalous Indorsement.","body":"(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 7-3-110 apply to special indorsements.\n(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.\n(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.\n(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.","path":["Title 7 Commercial Code.","Article 3 Negotiable Instruments.","Part 2 Negotiation, Transfer, and Indorsement."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=7-3-205","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:52Z","sha256":"a315c4bd1d0f90c5161e5d1f9932cca26516b1486a62dda6c24ffe7f2e8efe0d","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-7-3-204","next":"us-al/ala.-code-7-3-206"},"notice":"GroundRules: Original legal text. Not legal advice."}