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Unformatted text preview: Special Indorsement one identifying an indorsee to be paid and making the instrument order paper Unrestrictive Indorsement one that does not attempt to restrict the rights of the indorsee Restrictive Indorsement one attempting to limit the rights of the indorsee • Indorsements for Deposit or Collection effectively limit further negotiation to those consistent with the indorsement • Indorsements in Trust effectively require the indorsee to pay or apply all funds in accordance with the indorsement • Indorsements with Ineffective Restrictions include conditional indorsements and indorsements attempting to prohibit further negotiation Unqualified Indorsement one that imposes liability on the indorser Qualified Indorsement without recourse, one that limits the indorser’s liability Formal Requirements of Indorsements • Place of Indorsement Mann CH 27- 2 • Incorrect or Misspelled Indorsement Mann CH 27- 3...
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- Fall '10
- Business Law, indorsement, fictitious payee rule, Mann CH, Negotiation of Bearer Paper, mere possession Negotiation