The Florida Senate

678.308  Indorsements; instructions.--

(1)  An indorsement of a certificated security in registered form is made when an appropriate person signs on it or on a separate document an assignment or transfer of the security or a power to assign or transfer it or her or his signature is written without more upon the back of the security.

(2)  An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom the security is to be transferred, or who has power to transfer it. A holder may convert a blank indorsement into a special indorsement.

(3)  An indorsement purporting to be only of part of a certificated security representing units intended by the issuer to be separately transferable is effective to the extent of the indorsement.

(4)  An "instruction" is an order to the issuer of an uncertificated security requesting that the transfer, pledge, or release from pledge of the uncertificated security specified therein be registered.

(5)  An instruction originated by an appropriate person is:

(a)  A writing signed by an appropriate person; or

(b)  A communication to the issuer in any form agreed upon in a writing signed by the issuer and an appropriate person.

If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed even though it has been completed incorrectly.

(6)  "An appropriate person" in subsection (1) means the person specified by the certificated security or by special indorsement to be entitled to the security.

(7)  "An appropriate person" in subsection (5) means:

(a)  For an instruction to transfer or pledge an uncertificated security which is then not subject to a registered pledge, the registered owner; or

(b)  For an instruction to transfer or release an uncertificated security which is then subject to a registered pledge, the registered pledgee.

(8)  In addition to the persons designated in subsections (6) and (7), "an appropriate person" in subsections (1) and (5) includes:

(a)  If the person designated is described as a fiduciary but is no longer serving in the described capacity, either that person or her or his successor;

(b)  If the persons designated are described as more than one person as fiduciaries and one or more are no longer serving in the described capacity, the remaining fiduciary or fiduciaries, whether or not a successor has been appointed or qualified;

(c)  If the person designated is an individual and is without capacity to act by virtue of death, incompetence, infancy, or otherwise, her or his executor, administrator, guardian, or like fiduciary;

(d)  If the persons designated are described as more than one person as tenants by the entirety or with right of survivorship and by reason of death all cannot sign, the survivor or survivors;

(e)  A person having power to sign under applicable law or controlling instrument; and

(f)  To the extent that the person designated or any of the foregoing persons may act through an agent, her or his authorized agent.

(9)  Unless otherwise agreed, the indorser of a certificated security by her or his indorsement or the originator of an instruction by her or his origination assumes no obligation that the security will be honored by the issuer but only the obligations provided in s. 678.306.

(10)  Whether the person signing is appropriate is determined as of the date of signing and an indorsement made by or an instruction originated by the person does not become unauthorized for the purposes of this chapter by virtue of any subsequent change of circumstances.

(11)  Failure of a fiduciary to comply with a controlling instrument or with the law of the state having jurisdiction of the fiduciary relationship, including any law requiring the fiduciary to obtain court approval of the transfer, pledge, or release, does not render her or his indorsement or an instruction originated by her or him unauthorized for the purposes of this chapter.

History.--s. 1, ch. 65-254; s. 1, ch. 87-275; s. 663, ch. 97-102.

Note.--s. 8-308, U.C.C.; supersedes ss. 674.34-674.38, 674.40, 674.66, 674.71, 614.22.