Concepts Definitions
nnnnEndorsement: The act of signing on the back of a negotiable instrument (like a check or promissory note) to transfer one’s rights in it to another party.
nnnnNegotiable Instrument: A written, signed, and unconditional promise or order to pay a fixed amount of money on demand or at a definite time, which can be freely transferred.
nnnnBlank Endorsement: An endorsement that consists only of the endorser’s signature, making the instrument payable to anyone who holds it.
nnnnSpecial Endorsement: An endorsement that specifies the person to whom the instrument is now payable, such as “pay to the order of [name]”.
nnnnRestrictive Endorsement: An endorsement that restricts the further negotiation of the instrument, often for a specific purpose like “for deposit only”.
nnnnQualified Endorsement: An endorsement that limits the endorser’s liability, typically by including phrases like “without recourse,” meaning the endorser does not guarantee future payments from the maker/borrower.
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