The Code specifies that the signer is to be treated as an indorser if it is impossible to tell the nature of the signer's liability with certainty from the appearance of the signature on an instrument.

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The Code addresses this situation in Section 3-414(a), which states, "If an indorsement is made on an instrument otherwise than as a signature of the indorser, the indorser of the instrument is deemed to be the person specified in the indorsement as the person to whom the instrument is payable." This means that if the nature of the signer's liability cannot be determined from the appearance of the signature, the signer will be treated as an indorser.

The Code Specifies That the Signer Is to Be Treated