Scribd
Upload
1K views2 pages

INDORSEMENT

The document defines various types of endorsements related to negotiable instruments. It provides definitions for blank endorsement, special endorsement, qualified endorsement without recourse, restrictive endorsement, irregular endorsement, and conditional endorsement. Examples are given for each type to illustrate how they are used and their legal effects, such as passing title, limiting liability, or restricting further negotiation of the instrument.

Uploaded by

Kai W
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
1K views2 pages

INDORSEMENT

The document defines various types of endorsements related to negotiable instruments. It provides definitions for blank endorsement, special endorsement, qualified endorsement without recourse, restrictive endorsement, irregular endorsement, and conditional endorsement. Examples are given for each type to illustrate how they are used and their legal effects, such as passing title, limiting liability, or restricting further negotiation of the instrument.

Uploaded by

Kai W
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

INDORSEMENT, Black's Law Dictionary (11th ed.

2019)

Black's Law Dictionary (11th ed. 2019), indorsement

INDORSEMENT

Bryan A. Garner, Editor in Chief

indorsement n. (16c) 1. The placing of a signature, sometimes with an additional notation, on the back of a negotiable
instrument to transfer or guarantee the instrument or to acknowledge payment. 2. The signature or notation itself. — Also
spelled endorsement. — indorse, vb.

“The clever indorser can subscribe his or her name under a variety of magic phrases. The Code specifies the
legal effect of some of these phrases. Qualified indorsements (‘without recourse’) limit the liability of the
indorser if the instrument is dishonored. Restrictive indorsements such as ‘for deposit only,’ ‘pay any bank,’
and the like set the terms for further negotiation of the instrument. Their main purpose is to prevent thieves
and embezzlers from cashing checks.” 2 James J. White & Robert S. Summers, Uniform Commercial Code
§ 16-7, at 92–93 (4th ed. 1995).

- accommodation indorsement. (1888) An indorsement to an instrument by a third party who acts as surety for another party
who remains primarily liable. See ACCOMMODATION PAPER.
- anomalous indorsement. See irregular indorsement.
- blank indorsement. (18c) An indorsement that names no specific payee, thus making the instrument payable to the bearer
and negotiable by delivery only. UCC § 3-205(b). — Also termed indorsement in blank; general indorsement.
- collection indorsement. See restrictive indorsement.
- conditional indorsement. (1815) An indorsement that restricts the instrument in some way, as by limiting how the instrument
can be paid or transferred; an indorsement giving possession of the instrument to the indorsee, but retaining title until the
occurrence of some condition named in the indorsement. • Wordings that indicate this type of indorsement are “Pay to Brad
Jones when he becomes 18 years of age” and “Pay to Brigitte Turner, or order, unless before payment I give you notice to the
contrary.” — Also termed restricted indorsement; restrictive indorsement. Cf. special indorsement.

“Conditional indorsement. — This somewhat rare form of indorsement is one expressing a lawful condition,
other than those conditions implied by the Law Merchant such as presentment and notice of dishonor. For
example, ‘pay A on his graduation’, ‘pay A on arrival at twenty-one’, ‘pay A on completion of house
contract.’ Unlike conditions expressed on the face of the instrument, a conditional indorsement does not
destroy the negotiability of the instrument. Nor in making payment need the maker, drawee or acceptor
inquire whether the condition has been fulfilled or not.” Melville M. Bigelow, The Law of Bills, Notes, and
Checks 193–94 (William Minor Lile ed., 3d ed. 1928).

- full indorsement. 1. See irregular indorsement. 2. See special indorsement.


- general indorsement. See blank indorsement.
- indorsement in blank. See blank indorsement.
- indorsement in full. See special indorsement.
- indorsement without recourse. See qualified indorsement.
- irregular indorsement. (1741) An indorsement by a person who signs outside the chain of title and who therefore is neither a
holder nor a transferor of the instrument. • An irregular indorser is generally treated as an accommodation party. — Also termed
anomalous indorsement; full indorsement. See ACCOMMODATION PARTY.

© 2023 Thomson Reuters. No claim to original U.S. Government Works. 1


INDORSEMENT, Black's Law Dictionary (11th ed. 2019)

- qualified indorsement. (1806) An indorsement that passes title to the instrument but limits the indorser's liability to later
holders if the instrument is later dishonored. • Typically, a qualified indorsement is made by writing “without recourse” or “sans
recourse” over the signature. UCC § 3-415(b). — Also termed indorsement without recourse. See WITHOUT RECOURSE.

“A qualified indorsement is one that ‘constitutes the indorser a mere assignor of the title to the instrument.
It may be made by adding to the indorser's signature the words “without recourse”, or any words of similar
import. Such an indorsement does not impair the negotiable character of the instrument.’ The purpose of
such an indorsement is to pass title to the instrument without assuming a general indorser's liability. Though
by no means confined to that class, it is more commonly used by persons holding paper in a representative
capacity, in the transfer of the paper to the beneficial owner or owners — as in the case of agents, attorneys,
executors, administrators, guardians, trustees and other fiduciaries.” Melville M. Bigelow, The Law of Bills,
Notes, and Checks 192–93 (William Minor Lile ed., 3d ed. 1928) (citations omitted).

- restricted indorsement. See conditional indorsement.


- restrictive indorsement. (18c) An indorsement that includes a condition (e.g., “pay Josefina Cardoza only if she has worked 8
full hours on April 13”) or any other language restricting further negotiation (e.g., “for deposit only”). — Also termed collection
indorsement. See conditional indorsement.
- special indorsement. (18c) An indorsement that specifies the person to receive payment or to whom the goods named by the
document must be delivered. UCC § 3-205(a). — Also termed indorsement in full; full indorsement. Cf. conditional indorsement.
- trust indorsement. (1926) An indorsement stating that the payee becomes a trustee for a third person (e.g., “pay Erin Ray in
trust for Kaitlin Ray”); a restrictive indorsement that limits the instrument to the use of the indorser or another person.
- unauthorized indorsement. (1840) An indorsement made without authority, such as a forged indorsement.
- unqualified indorsement. (1808) An indorsement that does not limit the indorser's liability on the paper. • It does not, for
example, include the phrase “without recourse.”
- unrestrictive indorsement. (1844) An indorsement that includes no condition or language restricting negotiation. — Also
termed unrestricted indorsement.
Westlaw. © 2019 Thomson Reuters. No Claim to Orig. U.S. Govt. Works.

End of Document © 2023 Thomson Reuters. No claim to original U.S. Government Works.

© 2023 Thomson Reuters. No claim to original U.S. Government Works. 2

You might also like