Colombian Commercial Code - Decree 410 of 1971 - Book III - Of Commercial Property - Title III - Securities - Chapter III - Titles to Order - From: Section 651 By: Art 667

COLOMBIAN COMMERCIAL CODE

CHAPTER III

Titles to the orderlyn

Article 651 .- The securities issued in favor of a particular person, which add the clause "to order" or states that are transferable by endorsement, or say they are negotiable, or indicate their specific denomination of securities will be the order and transmitted by endorsement and delivery of title, without prejudice to Article 648.

Article 652 .- The transfer of title to order through various endorsement, the purchaser subrogated to all rights conferred the title, but subject to all defenses that could have been opposed to alienating.

Article 653 .- Who warrants that he has transferred title to order by means other than endorsement, the judge may require in the way of voluntary jurisdiction stating the title transfer or a sheet attached to it.

The record that put the judge in the title, will as an endorsement.

Article 654 .- The endorsement may be blank, with the sole signature of the endorser. In this case, the holder must complete the endorsement in blank with your name or a third party before filing entitled to exercise the right which it is incorporated.

When the express endorsement of the endorsee's name will require the endorsement of the latter to transfer the title legitimately.

Endorsement to bearer produce blank endorsement purposes.

The failure to sign the endorsement will not exist.

Article 655 .- The endorsement must be pure and simple. Any condition shall be deemed null and void. The endorsement shall be considered part unwritten.

Article 656 .- The endorsement may be owned, or security enforcement.

Article 657 .- The endorser autonomous obligation contract holders against all after him, but may be discharged by exchange by the clause "not my responsibility" or equivalent, attached to the endorsement.

Article 658 .- The endorsement containing the clause "proxy", "the collection" or an equivalent, does not transfer ownership, but empowers the endorsee to present the document for acceptance to cash out of court, to endorse in procurement and to protest. The endorsee will have the rights and obligations of a representative, even those requiring special clause, unless the transfer of the domain. The representation contained in the endorsement does not end with the death or incapacity of the endorser, but he can revoke it.

The endorser to revoke the representation contained in the endorsement, you must notify the debtor when it revoked does not appear in the title or a judicial process that is intended to give effect to that title.

Will be valid payment made by the debtor to the endorsee ignoring revocation of power.

Article 659 .- The endorsement will be given as security with the terms "collateral", "pledge" or equivalent. Constitute a lien on the title and confer the endorsee, as well as their rights to the pledgee the powers conferred on enforcement endorsement.

May not object to the endorsee as security personal exemptions that could have been opposed to previous holders.

Article 660 .- If an endorsement is omitted the date, it is presumed that the title was endorsed on the day that presented the same endorser to the endorsee.

The endorsement after the expiration of the title, have the effect of an ordinary assignment.

Article 661 .- For the holder of an instrument to legitimize the order of the chain of endorsements must be uninterrupted.

Article 662 .- The obligor may not require that you verify the authenticity of the endorsements, but the last holder must identify and verify the continuity of the endorsements.

Article 663 .- When the endorser of a security work in as a representative, agent or similar, must demonstrate that quality.

Article 664 .- Banks that receive titles for crediting an account holder to surrender, these securities may be charged even if not endorsed in your favor. Banks in these cases, be entered in the title the quality acting, and signed receipt in the title or sheet attached.

Article 665 .- Endorsements may be made between banks with the simple label of the endorser.

Article 666 .- The securities may be transferred to any of the required amount for the receipt of the extended title in the same document or sheet attached to it. The transfer shall take effect on receipt of endorsement without liability.

Article 667 .- The holder of a negotiable instrument endorsements you may strike after that in which he is endorsee, or endorse the instrument not obliterate these endorsements.