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LSDefine
Simple English definitions for legal terms
unauthorized indorsement
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A quick definition of unauthorized indorsement:
An endorsement is when someone signs the back of a money document, like a check, to transfer it to someone else or to show that it has been paid. There are different types of endorsements, like a blank endorsement where no specific person is named, or a conditional endorsement where the money can only be paid under certain conditions. An unauthorized endorsement is when someone signs the document without permission, like if someone forges a signature.A more thorough explanation:
An unauthorized indorsement is when someone signs a negotiable instrument, like a check or promissory note, without the proper authority to do so. This can happen when someone forges a signature or signs someone else's name without their permission.
For example, if John's roommate steals one of his checks and signs John's name on it to cash it, that would be an unauthorized indorsement. John did not give his roommate permission to sign his name on the check.
Unauthorized indorsements can cause problems for the rightful owner of the instrument, as they may be held liable for the amount of the instrument if it is cashed or transferred to a third party. It is important to protect your negotiable instruments and report any unauthorized activity to the proper authorities.