Qualified indorsement (endorsement)

Definition

An [wex:indorsement] — the placement of a signature on the back of a [wex:negotiable instrument] — coupled with an additional phrase, e.g. "without recourse" or "for deposit only," limiting the liability of the indorser (signer) in the event the instrument is dishonored. A qualified indorsement makes it more difficult for a thief or [wex:embezzler] to cash an instrument. Also spelled qualified endorsement. 

Illustrative caselaw

See, e.g. White v. Miners' National Bank, 102 U.S. 658, 662 (1880).

See also

  • [wex:Limited liability]

  • [wex:Forgery]

 

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