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Indorsement

Learn about indorsement, an act by which one signs an instrument for certain purposes, including negotiation.

Transcript

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,...

Lessons

    • 1. Welcome
    • Welcome to Payment Systems
    2. Negotiability
    • Introduction to Negotiable Instruments
    • Negotiability Requirements I
    • Negotiability Requirements II
    • Rule against Additional Terms
    3. Key Terms in Article 3
    • Key Terms I
    • Key Terms II
    • Becoming a Holder
    • Negotiation
    • Indorsement
    4. Enforcement of Negotiable Instruments
    • Holder in Due Course: Value and Good Faith
    • Holder in Due Course: Without Notice
    • Close-Connectedness Doctrine and Shelter Rule
    • Defenses against Enforcement
    5. Liability on Negotiable Instruments
    • Obligations of the Parties
    • Instruments Taken for an Obligation
    • Accord and Satisfaction Using a Negotiable Instrument
    • Enforcement of Lost, Stolen, or Destroyed Instruments
    • Warranty Liability
    6. Dishonor, Payment, and Discharge
    • Dishonor of Negotiable Instruments
    • Payment of Negotiable Instruments
    • Discharge of Liability
    7. Misconduct and Mistake
    • Unauthorized Signatures and Alterations
    • The Negligence Rule
    • Imposters and Fictitious or Unintended Payees
    • Conversion of a Negotiable Instrument
    8. Bank Deposits and Collections
    • Introduction to Article 4
    • Collection: Depositary and Collecting Banks
    • Collection: Payor Banks
    • Payor Bank’s Relationship to Its Customers