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Legal Definitions - anomalous indorsement
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Definition of anomalous indorsement
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.
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Simple Definition
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