Section 4--205. Supplying Missing Indorsement; No Notice From Prior

Indorsement.

(1) A depositary bank which has taken an item for collection may
supply any indorsement of the customer which is necessary to title
unless the item contains the words "payee's indorsement required" or the
like. In the absence of such a requirement a statement placed on the
item by the depositary bank to the effect that the item was deposited by
a customer or credited to his account is effective as the customer's
indorsement.

(2) An intermediary bank, or payor bank which is not a depositary
bank, is neither given notice nor otherwise affected by a restrictive
indorsement of any person except the bank's immediate transferor.