Endorsement

The signature of the payee or holder on the back of a cheque/draft is called an endorsement.

Kinds of Endorsement:

01. Blank endorsement
02. Full endorsement
03. Partial endorsement
04. Restrictive endorsement
05. Conditional endorsement
06. Endorsement Sans Recourse
07. Facultative endorsement

01. Blank Endorsement:
When the endorser signs his namely only (Mashud)

02. Full Endorsement:
When the endorsement adds the name of the endorsee above his signature, with a direction to pay him or to his order. A blank endorsement may be converted into full endorsement by writing the name of the endorsee over the signature of endorser. It is also called special endorsement : Pay to M/S. Liberty Impex.


03. Partial Endorsement:
Where only a part of the amount of the bill is transferred to a particular endorsee.

04. Restrictive Endorsement:
Where the endorser prohibits further negotiation.