Indorsement

Dictionary: 
Black's Law Dictionary: 2nd Edition

The act of a payee, drawee, accommodation indorser or holder of a bill, note, check or other negotiable instrument, in writing his name upon the back of the same, with or without further or qualifying words, whereby the property in the same is assigned and transferred to another. That which is so written upon the back of a negotiable instrument. One who writes his name upon a negotiable instrument, otherwise than as a maker or acceptor, and delivers it, with his name thereon, to another person, is called an "indorser," and his act is called "indorsement." Civ. Code Cal. § 3108; Civ. Co.de Dak. § 1836.
—Accommodation indorsement. One made by a third person who puis his indorsement on a note without any consideration, but merely for the benefit of the holder thereof or to enable the maker to obtain money or credit on it. Unless otherwise explained, it is understood to be a loan of the indorser's credit without restriction. Citizens' Bank v. Platt. 135 Mich. 267, 07 N. W. 694; Peale v. Addicks, 174 Pa. 543, 34 Atl. 201; Cozens v. Middleton. 118 Pa. 622, l2 Atl. 566.
—Blank indorsement. One made by the mere writing of the indorser's name on the back of the note or bill, without mention of the name of any person in whose favor the indorsement is made, but with the implied understanding that any lawful holder may fill in his own name above the indorsement if he so chooses. See Thornton v. Moody, 11 Me. 256; Scollans v. Rollins, 179 Mass. 346, 60 N. E. 983, 88 Am. St. Ren. 386; Malone v. Garver, 3 Neb. (Unof.) 710, 92 N. W. 726.
— Conditional indorsement. One by which the indorser annexes some condition (other than the failure of prior parties to pay) to his liability. The condition may be either precedent or subsequent. 1 Daniel, Neg. Inst. § 697.
—Fnll indorsement. One by which the indorser orders the money to be paid to some particular person by name; it differs from a blank indorsement, which consists merely in the name of the indorser written on the back of the instrument. Kilpatrick v. Heaton, 3 Brev. (S. C.) 92; Lee v. Chillicothe Branch of State Bank, 15 Fed. Cas. 153.
—Irregular indorsement. One made by a third person before delivery of the note to the payee; an indorsement in blank by a third person above the name of the payee, or when the payee does not indorse at all. Carter v. Long, 125 Ala. 280, 28 South. 74; Bank of Bellows Falls v. Dorset Marble Co.., 61 Vt. 106, 17 Atl. 43; Metropolitan Bank v. Muller, 50 Da. Ann. 1278, 24 South. 295, 69 Am. St. Rep. 475.
—Qualified indorsement. One which restrains or limits, or qualifies or enlarges, the liability of the indorser, in any manner different from what the law generally imports as his true liability, de-ducible from the nature of the instrument. Chitty, Bills, 261. A transfer of a bili of exchange or promissory note to an indorsee, without any liability to the indorser. The words usually employed for this purpose are "sons recours," without recourse. 1 Bouv. Inst. No. 1138.
—Regular indorsement. An indorsement in blank by a third person under the name of the payee or after delivery of the note to him. Bank of Bellows Falls v. Dorset Marble Co.., 61 Vt. 106, 17 Atl. 42,
—Restrictive indorsement. One which stops the negotiability of the instrument, or which contains such a definite direction as to the payment as to preclude the indorsee from making any further transfer of the instrument. Drew v. Jacock, 6 N. C. 138; Lee v. Chillicothe Branch Bank, 15 Fed. Cas. 153; People's Bank v. Jefferson County Sav. Bank, 106 Ala. 524, 17 South. 728, 54 Am. St. Rep. 59. Defined by statute in some states as an indorsement which either prohibits the further negotiation of the instrument, or constitutes the indorsee the agent of the indorsee, or vests the title in the indorsee in trust for or to the use of some other person. Negotiable Instruments Law N. D. § 36; Bates' Ann. St. Ohio 1904, § 3l72h.
—Special indorsement. An indorsement in full, which specifically names the indorsee. Malone v. Garver, 3 Neb. (Unof.) 710, 92 N. W. 726; Carolina Sav. Bank v. Florence Tobacco Co., 45 S. C. 373, 23 S. E. 139.
—Special indorsement of writ. In English practice. The writ of summons in an action may, under Order iii. 6, be indorsed with the particulars of the amount sought to be recovered in the action, after giving credit for any payment or set-off; and this special indorsement (as it is called) of the writ is applicable in all actions where the plaintiff seeks merely to recover a debt or liquidated demand in money payable by the defendant, with or without interest, arising upon a contract, express or implied, as, for instance, on a bill of exchange, promissory note, check, or other simple contract debt, or on a bond or contract under seal for payment of a liquidated amount of money, or on a statute where the sum sought to be recovered ls a fixed sum of money or in the nature of a debt, on on a guaranty, whether under seal or not. Brown.

Author: 
Henry Campbell Black, M.A.
Publisher: 
West Publishing Company
Year Published: 
1910
Genre: 
Law Dictionary