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An appropriate person in the context of indorsement means the person who is actually entitled to the security. A person so entitled will be usually specified in the security certificate or by an effective special indorsement.
The following is an example of a federal statute defining appropriate person.
According to U.C.C. § 8-107 (a), appropriate person means:
(1) with respect to an indorsement, the person specified by a security certificate or by an effective special indorsement to be entitled to the security;
U.C.C. § 8-107 (a) (4) also states that if the person designated in paragraph (1), (2), or (3) is deceased, the designated person's successor taking under other law or the designated person's personal representative acting for the estate of the decedent; or
(5) if the person designated in paragraph (1), (2), or (3) lacks capacity, the designated person's guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset.