252

LAWS OF MARYLAND

[Ch. 49

be honored by the issuer.

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

(6)   Whether the person signing is appropriate is
determined as of the date of signing and an indorsement
by such a person does not become unauthorized for the
purposes of this [subtitle] TITLE by virtue of any
subsequent change of circumstances.

(7)    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, does not render his indorsement
unauthorized for the purposes of this [subtitle] TITLE.

8—309. Effect of indorsement without delivery.

An indorsement of a security whether special or in
blank does not constitute a transfer until delivery of
the security on which it appears or if the indorsement is
on a separate document until delivery of both the
document and the security.

8—310. Indorsement of security in bearer form.

An indorsement of a security in bearer form may give
notice of adverse claims (§ 8—304) but does not otherwise
affect any right to registration the holder may possess.

8—311. Effect of unauthorized indorsement.

Unless the owner has ratified an unauthorized
indorsement or is otherwise precluded from asserting its
ineffectiveness

(a) He may assert its ineffectiveness against
the issuer or any purchaser other than a purchaser for
value and without notice of adverse claims who has in
good faith received a new, reissued or reregistered
security on registration of transfer; and

(b) An issuer who registers the transfer of a
security upon the unauthorized indorsement is subject to
liability for improper registration (§ 8—404).

8—312. Effect of guaranteeing signature or indorsement.

(1) Any person guaranteeing a signature of an
indorser of a security warrants that at the time of