An instruction printed on a cheque that makes it non-transferable, ensuring that the cheque can only be deposited into the account of the individual or entity named on the cheque, adding an additional layer of security.
In accounting, an endorsement refers to the act of signing the back of a negotiable instrument, such as a check, to transfer ownership or authorize payment.
A comprehensive explanation of endorsement, outlining its various forms, significance in financial transactions, legal implications, and usage in insurance policies.
A person or entity that guarantees, endorses, or provides indemnity agreements with respect to debts owed by another party. The guarantor ensures the debt will be repaid, and any losses incurred are deductible when sustained.
The term 'maker' has distinct meanings depending on the context. Generally, it refers to a producer of a product, such as a car manufacturer. In commercial law, it specifically designates the person who executes a note or endorses it before its delivery to the payee, thereby assuming the obligation to make a payment.
The ability of a document to change hands, entitling its owner to some benefit, such that legal ownership of the benefit passes by delivery or endorsement of the document.
A negotiable instrument is a document of title that can be freely transferred from one party to another, allowing for the facilitation of trade and commerce.
Understanding the concept of 'Payable to Bearer' in the realm of bills of exchange and how it differs from 'Payable to Order'. This term is essential for those involved in financial transactions using negotiable instruments.
A qualified endorsement is a type of financial endorsement that includes specific wording to limit the endorser's liability, such as 'Without recourse,' to indicate that the endorser is not responsible if the instrument is not honored.
A testimonial is a statement of worth or value provided by a respected source. They are often utilized to certify and endorse the value of a particular product or service in its advertising. Testimonials play a significant role in adding credibility and building trust with potential customers.
A third-party check is a negotiable instrument involving three parties: the bank (primary party), the drawer (secondary party), and the payee (third party), who often endorses the check to another recipient.
A phrase indicating that the holder of a bill of exchange cannot seek payment from the original payee if the bill is not honored.
