Types of Endorsement
There are three ways to endorse a check. All checks are endorsed on the back. There are pre-printed lines provided for your signature in the top 1/3 of the check. The rest of the space is used by the bank.
Blank Endorsement
- In a blank endorsement, the depositors sign on the check without specifying the name of the endorsee. This is also called general endorsement.
- The effect of such an endorsement is that the check amount is payable to anyone who is present for payment. This is not a safe endorsement because the amount is payable to the bearer of the check.
Special Endorsement
- In a special endorsement, the depositors write the names of the persons in whose favor the endorsement is made. This is also called full endorsement.
- In such an endorsement, the amount of the check is payable to the individual or business whose name appears in the endorsement. For example, Pay to Rutherford or Pay to Louis Blake.
Restrictive Endorsement
- In a restrictive endorsement, you write the words on the check that “restricts” the right of further transfer to any other person.
- Depositors write that the banker should pay the amount on the check only to the person whose name is specified on the endorsement. For example, Pay to Louis Blake only. The word “only” restricts the endorsement. The amount of check is payable only to Louis Blake.