indorsement


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Indorsement

A signature on a Commercial Paper or document.

An indorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual. The ordinary manner in which an individual endorses a check is by placing his or her signature on the back of it, but it is valid even if the signature is placed somewhere else, such as on a separate paper, known as an allonge, which provides a space for a signature.

The term indorsement is also spelled endorsement.

endorsement (indorsement)

n. 1) the act of the owner or payee signing his/her name to the back of a check, bill of exchange, or other negotiable instrument so as to make it payable to another or cashable by any person. An endorsement may be made after a specific direction ("pay to Dolly Madison" or "for deposit only"), called a qualified endorsement, or with no qualifying language, thereby making it payable to the holder, called a blank endorsement. There are also other forms of endorsement which may give credit or restrict the use of the check. 2) the act of pledging or committing support to a program, proposal, or candidate. (See: negotiable instrument)

indorsement

noun acceptance, accord, adfirmatio, affirmance, agreement, approbation, approval, assent, authorization, backing, certification, compliance, comprobatio, concurrence, confirmation, consent, encouragement, esteem, favor, partisanship, permission, ratification, sanction, stamp of approval, support, warrant
Associated concepts: conditional indorsement, indorsement for collection, indorsement in blank, indorsement in due course, indorsement of an instrument, indorsement without recourse, subsequent indorsement
See also: certification, leave, permission

indorsement

or

endorsement

1 the writing of the signature of the holder on a bill of exchange, this being an essential step in the process of negotiating or transferring it. The process of negotiation is completed by delivering the bill to the transferee. (For the requisites of a valid indorsement see Bills of Exchange Act 1882.) See CHEQUE.
2 a writing on the back of other documents. An indorsement of writ or claim is a writ of summons that must be indorsed with a statement of the claim made or relief or remedy sought.

INDORSEMENT, crim. law, practice. When a warrant for the arrest of a person charged with a crime has been issued by a justice of the peace of one county, which is to be executed in another county, it is necessary in some states, as in Pennsylvania, that it should be indorsed by a justice of the county where it is to be executed: this indorsement is called backing. (q.v.)

INDORSEMENT, contracts. In its most general acceptation, it is what is written on the back of an instrument of writing, and which has relation to it; as, for example, a receipt or acquittance on a bond; an assignment on a promissory note.
     2. Writing one's name on the back of a bill of exchange, or a promissory note payable to order, is what is usually called, an indorsement. It will be convenient to consider, 1. The form of an indorsement; and, 2. Its effect.
     3.-1. An indorsement is in full, or in blank. In full, when mention is made of the name of the indorsee; and in blank, when the name of the indorsee is not mentioned. Chitty on Bills, 170; 13 Serg. & Rawle, 315. A blank indorsement is made by writing the name of the indorser on the back; a writing or assignment on the face of the note or bill would, however, be considered to have the force and effect of an indorsement. 16 East, R. 12. when an indorsement has been made in blank any after attempt to restrain the negotiability of the bill will be unavailing. 1 E.N. P. C. 180; 1 Bl. Rep. 295; Ham. on Parties 104.
     4. Indorsements may also be restrictive conditional, or qualified. A restrictive indorsement may restrain the negotiability of a bill, by using express words to that effect, as by indorsing it "payable to J. S. only," or by using other words clearly demonstrating his intention to do so. Dougl. 637. The indorser may also make his indorsement conditional, and if the condition be not performed, it will be invalid. 4 Taunt. Rep. 30. A qualified indorsement is one which passes the property in the bill to the indorsee, but is made without responsibility to the indorser; 7 Taunt. R. 160; the words commonly used are, sans recours, without recourse. Chit. on Bills, 179; 3 Mass. 225; 12 Mass. 14, 15.
     5.-2. The effects of a regular indorsement may be considered, 1. As between the indorser and the indorsee. 2. Between the indorser and the acceptor. And, 3. Between the indorser and future parties to the bill.
     6.-1. An indorsement is sometimes an original engagement;as, when a man draws a bill payable to his own order, and indorses it; mostly, however, it operates as an assignment, as when the bill is perfect, and the payee indorses it over to a third person. As an assignment, it carries with it all the rights which the indorsee had, with a guaranty of the solvency of the debtor. This guaranty is, nevertheless, upon condition that the holder will use due diligence in making a demand of payment from the acceptor, and give notice of non-acceptance or non-payment. 13 Serg. Rawle, 311.
     7.-2. As between the indorsee and the acceptor, the indorsement has the effect of giving to the former all the rights which the indorser had against the acceptor, and all other parties liable on the bill, and it is unnecessary that the acceptor or other party should signify his consent or knowledge of the indorsement; and if made before the bill is paid, it conveys all these rights without any set-off, as between the antecedent parties. Being thus fully invested with all the rights in the bill, the indorsee may himself indorse it to another when he becomes responsible to all future patties as an indorser, as the others were to him.
     8.-3. The indorser becomes responsible by that act to all persons who may afterwards become party to the bill.
     Vide Chitty on Bills, ch. 4; 3 Kent, Com. 58; Vin. Abr. Indorsement; Com. Dig. Fait, E 2; 13 Serg. & Rawle, 311; Merl. Repert. mot Endorsement Pard. Droit Com. 344-357; 7 Verm. 356; 2 Dana, R. 90; 3 Dana, R. 407; 8 Wend. 600; 4 Verm. 11; 5 Harr. & John. 115; Bouv. Inst. Index, h.t.

References in periodicals archive ?
The easy fix to this is if New York were to adopt the revisions to Article 3, which clearly require indorsement and possession of the actual note.
While indorsement amounted to a weakening of finality, paying a debt by indorsing someone else's debt still represented an improvement over simple credit chains.
Why the outgoing President's felicitation on the indorsement? Why the delay of a re-argument?
(255) Therefore, in their view, noncompliance with the indorsement and delivery requirements in PSAs does not defeat transfers but instead creates a possible breach of contract.
* The Note is Indorsed to the Plaintiff or Indorsed in Blank--If the plaintiff is not the originating lender, as is typical, standing can be shown by tendering the original note with an indorsement to the plaintiff; tendering the original note indorsed in blank with an affidavit of the holder; or filing an affidavit or verified pleading that the plaintiff holds the note.
His unhappiness with Alcoa arises from the fear that other courts, encouraged by such a prominent decision and by the professors' indorsement, (74) would not only enlarge the grounds for avoidance of contracts but also embrace Judge Teitelbaum's claim that courts can and should fashion new contract terms for the remaining periods in contracts that had not yet expired when suit was filed.
This approach would require recordation of every mortgage transfer in a securitization, as well as cumbersome indorsement and delivery of thousands of notes, but these demonstrative formalities would be the price tag for clear property rights.
Similarly, an indorsement pursuant to Article 3 should satisfy that requirement.
(16.) Perraudin Accident Report, 9 Jan 1952 and 1st Indorsement, LTC Clement K.
or any other writing which evidences a right to the payment of money and is not itself a security agreement or lease and is of a type which is in ordinary course of business transferred by delivery with any necessary indorsement or assignment.").
Baraan, who is the supervising undersecretary for BuCor, issued the indorsement following a letter from the Office of Chief Justice Maria Lourdes Sereno requesting the DOJ to look into the allegations of the inmate that his wife was raped by prison guards and other inmates.