Southwestern Resolution Corp. v. Watson

An indorsement of a negotiable instrument must be written on the instrument itself or on a paper affixed to the instrument. The dispositive issue in this case is whether an indorsement on a paper stapled and taped to a note meets this requirement as a matter of law. We hold that it does.

Southwestern Resolution Corporation purchased a promissory note executed by First Texas Realty Corp. to Canyon Lake Bank for the principal sum of $85,000, a guaranty of the note by First Texas’ president, Vernon Lee Watson, and a deed of trust securing payment of the note. The note is printed on an 8½” x 14”…