TeachMeFinance.com - explain Restrictive indorsement
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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