indorsement, n. 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. indorse, vb. 1. To sign (a negotiable instrument), usu. on the back, either to accept responsibility for paying an obligation memorialized by the instrument or to make the instrument payable to someone other than the payee. 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. Blank or General indorsement - If the instrument is payable to John Smith, the indorsement in blank is his simple signature without additional words, i.e., John Smith. It specifies no particular indorsee, and thereafter is payable to bearer and may be negotiated by delivery alone. It is a common form of indorsement, but if the instrument is lost or stolen, it may be more easily negotiated by the finder or thief to a holder in due course, the latter as such then having superior rights as against the original owner. The holder may convert an indorsement in blank into a special indorsement. An indorsement in blank is an unqualified indorsement, and thus the indorser thereof makes all the warranties to all subsequent holders in due course specified in Section 3-417, Uniform Commercial Code. Special indorsement - Special indorsement, also known as direct indorsement and indorsement in full. This indorsement specifies the person to whom or to whose order the instrument is payable, and the indorsement of such indorsee is necessary to the further negotiation of the instrument. A special indorsement is an unqualified indorsement, and the indorser thereof makes all the warranties to all subsequent holders in due course detailed in Section 3-417 of the Uniform Commercial Code. Conditional indorsement - This is a form of indorsement in which the indorser imposes some condition upon the transferee, e.g., Pay Adam Smith upon the satisfactory performance of his contract, (signed) Jane White. Where an indorsement is conditional, a party required to pay the instrument may make payment to the indorsee or his transferee, whether the condition has been fulfilled or not; but any person to whom an instrument so indorsed is negotiated will hold the same, or the proceeds thereof, subject to the rights of the person indorsing conditionally. The conditional indorsement is an unqualified indorsement dependent upon the condition's fulfillment, and the indorser thereof thus makes all the warranties, if the condition is fulfilled, specified in Section 3-417, Uniform Commercial Code. Qualified indorsements are of two types and constitute the indorser a mere assignor of title to the instrument: Qualified indorsement - Qualified indorsement Without Recourse, or similar wording. The qualified indorsement does not destroy the negotiability of the instrument. The without recourse indorser makes the limited warranties found in Section 3-417, Uniform Commercial Code. A qualified indorsement is one directing it to be paid to a specific person or to be otherwise restricted, such as an indication of "for deposit only". If no qualifying language accompnies the signature, it is called a blank indorsement and payable to the holder. Restrictive indorsement - A restrictive indorsement is a blank or special indorsement accompanied by words which either (1) prohibit the further negotiation of the instrument; or (2) constitute the indorsee the agent of the indorser; or (3) vest the title in the indorsee in trust for or to the use of some other person. A restrictive indorsement is an indorsement signed on the back of a check, note or bill of exchange which restricts to whom the paper may be transferred. In addition to holder's signature, it includes a restriction on how the paper may be used by transferee. Only the payee can write a restrictive indorsement. A restrictive indorsement confers upon the indorsee the rights to (1) receive payment of the instrument; (2) bring any action thereon that the indorser could bring; (3) transfer his rights as such indorsee, where the form of the indorsement authorizes him to do so. All subsequent indorsees acquire only the title of the first indorsee under the restrictive indorsement. The restrictive indorser is a qualified indorser, and makes the limited warranties found in Section 3-417, Uniform Commercial Code. En Latin for behold. No authority. I endorse this product In Latin for upon, into, onto. Authority. As the designated payee, I indorsed the check