BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Restrictive indorsement. 30-3-205. Restrictive indorsement. (1) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument.

Detailed explanation-2: -038 Qualified indorsement. A qualified indorsement consti-tutes the indorser a mere assignor of the title to the instrument. It may be made by adding to the indorser’s signature the words “without recourse” or any words of similar import.

Detailed explanation-3: -For example, suppose a check is payable to X, who indorses in blank but writes above the signature the words “For deposit only.” The check is stolen and is cashed at a grocery store by the thief. The grocery store indorses the check and deposits it in Depositary Bank.

Detailed explanation-4: -Definition of indorsement, indorser, and indorsee The person or entity who writes his/her name on an indorsed document is called an indorser, and the person to whom it is signed is called an indorsee.