Donna is the holder of a note that has been indorsed so many times that there is no space left on the back of the note for indorsements.Donna wants to transfer the note for $200 to Acme Finance,but wants to indorse on the face of the note "without recourse,Donna ".Acme wants to staple a sheet of blank paper to the note and have Donna simply sign "Donna" there.Discuss whether Donna or Acme is correct concerning the location of Donna's signature and if Donna is legally entitled to indorse "without recourse."

Indorsements may either be made on an allonge or firmly affixed to the instrument so that it becomes a part of it,or on the face of the note,since the UCC does not specify a particular side of the paper for indorsements.Hence,both Donna and Acme are correct.However,Acme will have the right to have the unqualified indorsement of Donna if they give value for the instrument,unless it is payable to bearer.Donna is legally entitled to indorse "without recourse" only if she has no knowledge of a defense that may be used.