{"id":12034,"date":"2018-01-15T01:47:12","date_gmt":"2018-01-15T01:47:12","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=12034"},"modified":"2018-03-12T03:01:19","modified_gmt":"2018-03-12T03:01:19","slug":"indorsment","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=12034","title":{"rendered":"indorsement – the signing of one’s name on the back of a negotiable instrument, to transfer title to the paper to another person, usually to guarantee payment"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0 This page is continued from Legal Instruments<\/a> >>>> Related Terms<\/a> >>>> Negotiable<\/a> >>>> Transfer<\/a> >>>> The Four Methods of Transfer<\/a>:<\/span>
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indorsement<\/span>:<\/span><\/span><\/strong>
\n n. (16C)<\/span><\/span><\/p>\n

1. The placing of a signature, sometimes with an additional notation, on the back of a<\/span> negotiable instrument<\/a> to transfer or guarantee the instrument or to acknowledge payment. <\/span><\/span><\/strong><\/p>\n

2. The signature or notation itself.<\/strong> \u2014 Also spelled<\/span> endorsement<\/strong><\/em><\/span>. indorse<\/strong><\/em><\/span>, vb<\/em>. [1]<\/span>
\n<\/span><\/p>\n

1. Literally, as derived from the Latin \u201cindorsa,\u201d a writing on the back; employed in common as well as legal usage to designate the transaction whereby the holder of a bill or note transfers his right to such instrument to another person and incurs the liabilities incident to the transfer under the law.<\/span> 11 Am 12d B & N \u00a7 349<\/span>. <\/span><\/span><\/strong><\/p>\n

The writing of <\/span>one\u2019s own name on the back of a<\/span> negotiable instrument<\/a>, whereby one not only transfers one’s full legal title to the paper but likewise enters into a contract, implied or express, dependent upon whether or not the signing of the name is accompanied by other words, and the particular words used, such as an implied guaranty that the instrument will be paid.<\/span> Glaser v Connell<\/em>, 47 Wash 2d 622, 289 P2d 364<\/span>.<\/span><\/span><\/strong><\/p>\n

An additional contract on the instrument; a new, independent, and substantive contract.<\/span> 11 Am J2d B & N \u00a7 349<\/span>. (For liability of indorser, see<\/span> 11 Am J2d B & N \u00a7\u00a7 598 et seq.<\/span><\/span>) <\/span><\/span><\/strong><\/p>\n

Signing one\u2019s name on the face of a bill or note with words indicating the character of the signature as an indorsement or the character of the signer as an indorser.<\/span> Peoples Nat. Bank v Dicks<\/em>, 258 Mich 441, 242 NW 825<\/span>. <\/span><\/span><\/strong><\/p>\n

A signature on a<\/span> security<\/a> in registered form or on a separate document assigning or transferring the<\/span> security<\/a> or granting a power to assign or transfer it, or the mere signature on the back of <\/span><\/span>a<\/span> security<\/a> of a person having the right or authority to assign or transfer the instrument or empower another person to assign or transfer it.<\/span> UCC \u00a7 8-308(1)<\/span>.<\/span>
\n<\/span><\/strong><\/p>\n

Broadly, a writing on the back of an instrument for any purpose, not necessarily the purpose of transfer or assumption of liability.<\/span> 11 Am 12d B & N \u00a7 349<\/span>. <\/span><\/span><\/strong><\/p>\n

Technically confined to the theory of negotiability, but commonly used in application to the writing of a name on the back of a nonnegotiable instrument.<\/span> Bank of America v Butterfield<\/em>, 77 SD 170, 88 NW2d 909<\/span>.<\/span><\/span><\/strong><\/p>\n

A signature upon the back of a will.<\/span> 57 Am J1st Wills \u00a7 263<\/span>. <\/span><\/span><\/strong><\/p>\n

Most broadly, a writing upon either the back or margin of an instrument, for example, a writing indicating part payment.<\/span> 34 Am J1st Lim Ac \u00a7 347<\/span>. <\/span><\/span><\/strong><\/p>\n

The marking of an envelope which contains a deposition to indicate such content and the <\/span>title of the cause.<\/span> 23 Am J2d Dep \u00a7 82<\/span>.<\/span><\/span><\/strong> [2]
\n<\/span><\/p>\n

1. The writing of one’s name on the back of a<\/span> negotiable instrument<\/a>, by which a person transfers title to the paper to another person.<\/span><\/span><\/strong><\/p>\n

2. Loosely speaking, signing one’s name on the back of any document.<\/span><\/strong><\/span><\/p>\n

3. Approval; backing; support.\u00a0 Used in this sense, the word is generally spelled endorsement.<\/span><\/strong> [3]<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0 Excerpt from James J. White & Robert S. Summers’s<\/span> Uniform Commercial Code<\/em><\/a> (4th ed. .1995):<\/span><\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201c<\/span>The clever indorser can subscribe his or her name under a variety of magic phrases.\u00a0 The Code specifies the legal effect of some of these phrases.\u00a0 Qualified indorsements (\u2018without recourse\u2019) limit the liability of the indorser if the instrument is dishonored.\u00a0 Restrictive indorsements such as \u2018for deposit only,\u2019 \u2018pay any bank,\u2019 and the like set the terms for further negotiation of the instrument.\u00a0 Their main purpose is to prevent thieves and embezzlers from cashing checks.<\/span>\u201d<\/span><\/strong> [4]<\/span><\/span><\/p>\n

Related Terms:<\/strong><\/span><\/p>\n

indorsee<\/span><\/a> – a person to whom a negotiable instrument<\/a> is transferred by indorsement<\/a>.<\/strong> \u2014 Also spelled endorsee<\/strong><\/em><\/span>.<\/span><\/p>\n

indorser<\/span><\/a> – a person who transfers a negotiable instrument<\/a> by indorsement.<\/span><\/strong><\/p>\n

Types of Indorsements:<\/span><\/strong><\/p>\n

accommodation indorsement<\/span>:<\/span><\/strong> (1888) An indorsement <\/strong><\/span>to an instrument by a third party who acts as surety<\/a> for another party who remains primarily liable.\u00a0<\/strong> See <\/span>ACCOMMODATION PAPER. <\/span><\/p>\n

blank indorsement<\/span>:<\/strong><\/span> (18c) An indorsement that names no specific payee, thus making the instrument payable to the bearer and negotiable by delivery only. UCC \u00a7 3-205(b)<\/a>.<\/strong> \u2014 aka indorsement in blank<\/em><\/span><\/strong>; general <\/em><\/strong><\/span><\/span>indorsement<\/em><\/strong><\/span>. <\/span><\/p>\n

conditional indorsement<\/span>:<\/strong><\/span> (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.\u00a0 *\u00a0 Wordings that indicate this type of indorsement are \u201cPay to Brad Jones when he becomes 18 years of age\u201d and \u201cPay to Brigitte <\/strong><\/span>Turner, or order, unless before payment I give you notice to the contrary.\u201d<\/strong> \u2014 aka restricted indorsement<\/strong><\/em><\/span>; restrictive indorsement<\/strong><\/em><\/span>.\u00a0 Cf. special indorsement.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from Melville M. Bigelow’s The Law of Bills, Notes, and Checks<\/em><\/a> (William Minor Lile ed., 3d ed. 1928):<\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cConditional 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.\u00a0 For example, \u2018pay A on his graduation\u2019, \u2018pay A on arrival at twenty-one\u2019, \u2018pay A on completion of house contract.\u2019 Unlike conditions expressed on the face of the instrument, a conditional indorsement does not destroy the negotiability of the instrument.\u00a0 Nor <\/span><\/span><\/strong>in making payment need the maker, drawee or acceptor inquire whether the condition has been fulfilled or not.<\/span>\u201d<\/strong> [5]<\/span><\/p>\n

irregular indorsement<\/span>:<\/span><\/strong> (1741) An indorsement by a person who signs outside the chain of title and who therefore is neither a holder nor a transferer of the instrument.\u00a0 *\u00a0 An irregular indorser is generally treated as an accommodation party. <\/strong>\u2014 aka anomalous indorsement<\/strong><\/em><\/span>; full indorsement<\/strong><\/em><\/span>.\u00a0 See ACCOMMODATION PARTY. \u2018<\/span><\/p>\n

qualified indorsement<\/span>:<\/strong><\/span> (1806) An indorsement that passes title to the instrument but limits the indorser\u2019s liability to later holders if the instrument is later dishonored.\u00a0 *\u00a0 Typically, a qualified indorsement is made by writing \u201cwithout recourse\u201d or \u201csans recourse\u201d over the signature. UCC \u00a7 3-415(b)<\/a>.<\/strong> \u2014 aka indorsement without recourse<\/strong><\/em><\/span>. See WITHOUT RECOURSE.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from Melville M. Bigelow’s The Law of Bills, <\/em><\/a>Notes, and Checks<\/em> (William Minor Lile ed., 3d ed. 1928):<\/span><\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cA qualified indorsement is one that \u2018constitutes the indorser a mere assignor of the title to the instrument.\u00a0 <\/span><\/span><\/strong>it may be made by adding to the indorser\u2019s signature the words \u201cwithout recourse\u201d, or any words of similar import. Such an indorsement does not impair the negotiable character of the instrument.\u2019\u00a0 The purpose of such an indorsement is to pass title to the instrument without assuming a general indorser\u2019s liability.\u00a0 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 \u2014 as in the case of agents, attorneys, executors, administrators, guardians, trustees and other fiduciaries.<\/span>\u201d<\/strong> [6]<\/span><\/p>\n

restrictive indorsement<\/span>:<\/span> <\/strong>(18c) An indorsement that <\/strong><\/span>includes a condition (e.g., \u201cpay Josefina Cardoza only if she has worked 8 full hours on April 13\u201d) or any other <\/span><\/strong>language restricting further negotiation (e.g., \u201cfor deposu only ).<\/strong> \u2014 aka collection indorsement<\/strong><\/em><\/span>.\u00a0 <\/span>See conditional indorsement<\/em>.<\/span><\/p>\n

special indorsement<\/span>:<\/strong><\/span> (18c) An indorsement that specifies the person to receive payment or to whom t e goods named by the document must be delivered. UCC \u00a7 3-205(a)<\/a>. <\/strong>\u2014 aka indorsement in full<\/strong><\/em><\/span>; full indorsement<\/strong><\/em><\/span>.\u00a0 Cf. conditional indorsement.<\/span><\/p>\n

trust indorsement<\/span>:<\/strong><\/span> (1926) An indorsement stating that the payee becomes a trustee for a third person.(e..g., \u201cpay Erin Ray in trust for Kaitlin Ray\u201d); a restrictive <\/strong><\/span>indorsement that limits the instrument to the use of the indorser or another person.<\/span><\/strong><\/p>\n

unauthorized indorsement<\/span>:<\/strong><\/span> (1840) An indorsement made without authority, such as a forged indorsement.<\/strong><\/span><\/p>\n

unqualified indorsement<\/span>:<\/strong> <\/span>(1808) An indorsement that does not limit the indorser\u2019s liability on the paper.\u00a0 *\u00a0 <\/strong><\/span>It does not, for example, include the p rase \u201cwithout recourse.\u201d<\/span><\/strong><\/p>\n

unrestrictive indorsement<\/span>:<\/span><\/strong> (1844) An indorsement that Includes no condition or language restricting negotiation.<\/strong> \u2014 aka unrestricted indorsement<\/strong><\/em><\/span>.<\/span><\/p>\n

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\u00a0\u00a0\u00a0\u00a0 See backing<\/em>; blank indorsement<\/em>; for account of<\/em>; for clearing house purposes only<\/em>; for collection<\/em>; for deposit<\/em>; full indorsement<\/em>; general indorsement<\/em>; guaranty of previous indorsements<\/em>; irregular indorsement<\/em>; previous indorsements guaranteed<\/em>; proper indorsement<\/em>; qualified indorsement<\/em>; regular indorsement<\/em>; restrictive indorsement<\/em>; special indorsement<\/em>; transfer by indorsement<\/em>; usual course of business<\/em>; waiver of presentment<\/em>; waiver of protest<\/em>; without recourse<\/em>. [2]<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 See endorsement<\/em>.<\/span>
\n\u00a0\u00a0\u00a0\u00a0 See further accommodation paper<\/em>; blank indorsement<\/em>; conditional indorsement<\/em>; full indorsement<\/em>; general indorsement<\/em>; full indorsement<\/em>; general indorsement<\/em>; restrictive indorsement<\/em>; special indorsement<\/em>. [3]<\/span><\/p>\n

References:<\/span><\/span><\/strong><\/p>\n

Disclaimer:<\/span><\/span><\/strong> All material throughout this website is compiled in accordance with Fair Use<\/a><\/span><\/strong>.<\/strong><\/p>\n

[1]: Black\u2019s Law Dictionary\u00a0Deluxe Tenth Edition\u00a0by Henry Campbell Black & Editor in Chief Bryan A. Garner<\/a>. ISBN: 978-0-314-62130-6<\/span><\/strong><\/p>\n

[2]: Ballantine\u2019s Law Dictionary\u00a0<\/a><\/span><\/strong>with Pronunciations
\n<\/span><\/em>Third Edition<\/span><\/strong><\/a>\u00a0by James A. Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Edited by William S. Anderson.\u00a0\u00a0\u00a9 1969 by THE LAWYER\u2019S CO-OPERATIVE PUBLISHING COMPANY.\u00a0 Library of Congress Catalog Card No. 68-30931<\/span><\/strong><\/p>\n

[3]: Ballantine’s Law Dictionary <\/a><\/span><\/strong>Legal Assistant Edition<\/span><\/a><\/em>
\nby Jack Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Doctored<\/span><\/a><\/strong>\u00a0<\/span><\/em>by\u00a0Jack G. Handler,\u00a0J.D.<\/a>\u00a0\u00a9 1994 Delmar by Thomson Learning.\u00a0 ISBN 0-8273-4874-6.<\/span><\/strong><\/p>\n

[4]: 2 James J. White & Robert S. Summers, Uniform Commercial Code<\/em><\/a> 5 16-7, at 92-93 (4th ed. .1995).<\/span><\/strong><\/p>\n

[5]: Melville M. Bigelow, The Law of Bills, Notes, and Checks<\/em><\/a> 193-94 (William Minor Lile ed., 3d ed. 1928).<\/span><\/strong><\/p>\n

[6]: Melville M. Bigelow, The Law of Bills, <\/em><\/a>Notes, and Checks<\/em> 192-93 (William Minor Lile ed., 3d ed. 1928) (citations omitted).<\/span><\/strong><\/p>\n

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