Legal Definitions - back

In legal contexts, the verb "to back" primarily refers to the act of signing a document, often on its reverse side, to give it legal effect. This action can signify several things, including transferring rights, formally approving a proposal, or accepting financial responsibility for an obligation.

• Transferring a Financial Instrument:

  Imagine a scenario where Maria receives a check made out to her, but she wants to deposit it into a joint account she shares with her spouse, David, or even give it to David to cash. To do this, Maria would "back" the check by signing her name on the endorsement line on the back. This signature legally transfers her right to the funds, allowing David to deposit or cash it.

• Assuming Financial Responsibility:

  Consider a situation where a small business applies for a loan, but the bank requires additional assurance due to the company's limited operating history. The owner of the business might agree to "back" the loan personally. By signing a personal guarantee, the owner legally commits to being financially responsible for repaying the loan if the business defaults, thereby providing the bank with an additional layer of security.

• Formal Approval of a Document or Decision:

  Suppose a municipal council is considering a new zoning ordinance, and the city's legal department has drafted the final version after public hearings. Before presenting it for a full council vote, the city attorney might "back" the ordinance by signing it. This signature indicates the legal department's formal approval that the document is legally sound and ready for the next stage of the legislative process.