Section 3--202. Negotiation.

(1) Negotiation is the transfer of an instrument in such form that the
transferee becomes a holder. If the instrument is payable to order it is
negotiated by delivery with any necessary indorsement; if payable to
bearer it is negotiated by delivery.

(2) An indorsement must be written by or on behalf of the holder and
on the instrument or on a paper so firmly affixed thereto as to become a
part thereof.

(3) An indorsement is effective for negotiation only when it conveys
the entire instrument or any unpaid residue. If it purports to be of
less it operates only as a partial assignment.

(4) Words of assignment, condition, waiver, guaranty, limitation or
disclaimer of liability and the like accompanying an indorsement do not
affect its character as an indorsement.