1. Types of Negotiable Instruments
Endorsements
Unit B Business Law
Objective 6.01
Types of Negotiable Instruments

2. Endorsements Signature on the back of a negotiable instrument
Allow payee to cash, deposit or transfer payment of the check to someone else
Proof that the payee cashed or transferred payment of the check to someone else
Endorser is responsible for payment of the check if the new owner cannot collect payment
Endorse should sign the check the way it is on the front of the check and if the name is misspelled, correct the signature directly up under the first endorsement

3. DO NOT WRITE BELOW THIS LINE
Blank Endorsements
Signed with endorser’s name only
Can be cashed by anyone who has a check with a blank endorsement
X Jane Doe
DO NOT WRITE BELOW THIS LINE

4. Special Or Full Endorsements
Transfer payment to someone else
Can make a payment on a debt with this endorsement
Payee signs the check over to another person to receive payment
X Pay to the order of
Jane Doe
John Doe
DO NOT WRITE BELOW THIS LINE

5. Restrictive Endorsements
Limits use of check
Safest type of endorsement
Can not be cashed by someone who has stolen the check
Safest way to send a check through the mail
X For Deposit Only
DO NOT WRITE BELOW THIS LINE