restrictive endorsement

  

Definition

Endorsement which limits further negotiability of a negotiable instrument. For example, the words 'accounts payee Only' on the face (in the UK) or 'For deposit only' on the back (in the US) of a check block its cashing over the counter and (generally) endorsement to another party. Also called endorsement limiting further endorsement.

Use this term in a sentence

  • By using checks with restrictive endorsement, Andrew could feel comfortable carrying around his checkbook, knowing that no one could try to re-route the checks he wrote.

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  • The restrictive endorsement was useful in organizing the payment process as we wanted to ensure no mistakes or problems would arise.

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  • He received a restrictive endorsement from the company and that meant a few things that an ordinary endorsement did not.

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