Definition of Restrictive indorsement

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TeachMeFinance.com - explain Restrictive indorsement




historic definition...

Restrictive indorsement -- An indorsement so worded as to restrict the further negotiability of the instrument. The words "For collection" written on a promissory note render the instrument restrictive. The indorser in such a case may hold that he is not the owner of the note and did not mean to give title to it or to its proceeds when collected ; such an indorsement merely makes the indorsee agent for the indorser in collecting the note.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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