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LSDefine
Simple English definitions for legal terms
anomalous indorsement
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A quick definition of anomalous indorsement:
An indorsement is when someone signs the back of a piece of paper that can be used as money, like a check, to transfer it to someone else or to show that it has been paid. There are different types of indorsements, like a blank indorsement where no specific person is named, or a conditional indorsement where the transfer of the paper depends on something happening first. An anomalous indorsement is when someone signs the paper who shouldn't be signing it. This can cause problems because they don't have the right to transfer the paper.A more thorough explanation:
An anomalous indorsement is a type of irregular indorsement where a person signs outside the chain of title and is neither a holder nor a transferor of the negotiable instrument. This type of indorsement is also known as a full indorsement.
For example, if John signs the back of a check made out to Mary, but John is not a party to the check and has no right to endorse it, his signature would be considered an anomalous indorsement.
Anomalous indorsements are generally treated as accommodation parties, which means they are not liable for the payment of the instrument but are only signing to help facilitate the transaction.