Qualified indorsement (endorsement)
Definition
An indorsement — the placement of a signature on the back of a 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 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
Definition from Nolo’s Plain-English Law Dictionary
An endorsement that passes title to a negotiable instrument with certain restrictions. For example, writing "without recourse" on the back of the check would create a qualified endorsement. Compare: blank endorsement
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm
