(810 ILCS 5/3-205)
(from Ch. 26, par. 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 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 that
is not the holder of the instrument. An anomalous indorsement does not
affect the manner in which the instrument may be negotiated.
(Source: P.A. 87-582