908                               LAWS OF MARYLAND                        [CH. 538

to the registration, payment or exchange. But a purchaser for
value without notice of adverse claims who receives a new, reissued
or reregistered security on registration of transfer warrants only
that he has no knowledge of any unauthorized signature (Section
8—311) in a necessary indorsement.

(2)  A person by transferring a security to a purchaser for value
warrants only that

(a)  his transfer is effective and rightful; and

(b)  the security is genuine and has not been materially altered;
and

(c)  he knows no fact which might impair the validity of the
security.

(3)  Where a security is delivered by an intermediary known to
be entrusted with delivery of the security on behalf of another or
with collection of a draft or other claim against such delivery, the
intermediary by such delivery warrants only his own good faith and
authority even though he has purchased or made advances against
the claim to be collected against the delivery.

(4) A pledge PLEDGEE or other holder for security who redelivers
the security received, or after payment and on order of the debtor de-
livers that security to a third person makes only the warranties of
an intermediary under subsection (3).

(5) A broker gives to his customer and to the issuer and a pur-
chaser the warranties provided in this section and has the rights and
privileges of a purchaser under this section. The warranties of and
in favor of the broker acting as an agent are in addition to applicable
warranties given by and in favor of his customer.

8—307. Effect of Delivery Without Indorsement; Right to Compel
Indorsement.—

Where a security in registered form has been delivered to a pur-
chaser without a necessary indorsement he may become a bona fide
purchaser only as of the time the indorsement is supplied, but against
the transferor the transfer is complete upon delivery and the pur-
chaser has a specifically enforceable right to have any necessary
indorsement supplied.

8—308. Indorsement, How Made; Special Indorsement; Indorser
Not a Guarantor; Partial Assignment.—

(1)  An indorsement of a security in registered form is made when
an appropriate person signs on it or on a separate document an as-
signment or transfer of the security or a power to assign or trans-
fer it or when the signature of such person 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 the person 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.