The act of a person who is holder of a negotiable instrument in signing his or her name on the back of that instrument, thereby transferring title or ownership. An endorsement may be made if favour of another individual or legal entity, resulting in a transfer of the property to that other individual o legal entity. There are several types of endorsements:
- Endorsement in blank is the writing of only the endorser´s name on the negotiable instrument without designating another person to whom the endorsement is made, and with the implied understanding that the instrument is payable to the bearer.
- Collection endorsement is one that restricts payment of the endorsed instrument to purposes of deposit or collection.
- Conditional endorsement is one that limits time at which the instrument can be paid or further transferred or that requires the occurrence of an event before the instrument is payable.
- Restrictive endorsement is one that directs a specific payment of the instrument, such as for deposit or collection only, and that precludes any other transfer of it.