In another lesson, we mentioned that certain negotiable instruments require an indorsement for negotiation. In this lesson, we’ll learn what an indorsement is and discuss some of the reasons one may indorse an instrument.

I. Indorsement

Broadly speaking, an indorsement is a signature on a negotiable instrument. More specifically, Article 3 defines indorsement as a signature other than that of the instrument’s issuer or acceptor made for the purpose of either negotiating the instrument,...