An indorsement, also spelled as "endorsement" in some legal contexts, refers to the placement of a signature on the back of a negotiable instrument, such as a check, promissory note, or bill of exchange. The purpose of the endorsement is to transfer ownership of the instrument or to acknowledge the payment of a debt.
Under the Uniform Commercial Code (UCC), a comprehensive set of laws governing commercial transactions in the United States, an indorsement can be either blank or special. A blank indorsement consists of only the signature of the endorser and does not specify a particular person to whom the instrument is transferred. This type of indorsement makes the instrument payable to the bearer, meaning that whoever has physical possession of the instrument can enforce it.
[Last updated in March of 2023 by the Wex Definitions Team]