20:59
got a random stanford email and almost had a heart attack
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
general indorsement
Read a random definition: ASFA
A quick definition of general indorsement:
General indorsement is when someone signs the back of a piece of paper that can be traded for money (like a check) without writing a specific person's name. This makes it so anyone who has the paper can trade it for money. There are other types of indorsements that have different rules, like ones that limit who can trade the paper or ones that limit the signer's responsibility if the paper can't be traded.A more thorough explanation:
A general indorsement is when a signature is placed on the back of a negotiable instrument, like a check, to transfer or guarantee the instrument or to acknowledge payment. It can also refer to the signature or notation itself.
For example, if someone signs the back of a check without specifying a specific payee, it becomes a blank indorsement or a general indorsement. This makes the check payable to the bearer and negotiable by delivery only.
Another example is a qualified indorsement, which limits the liability of the indorser if the instrument is dishonored. This is done by writing "without recourse" or "sans recourse" over the signature.
Overall, a general indorsement is a way to transfer or guarantee a negotiable instrument through a signature on the back.