INDORSATION Meaning and
Definition
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Indorsation is a term commonly used in legal and financial contexts, particularly in relation to negotiable instruments such as checks, promissory notes, and bills of exchange. It refers to the act of endorsing or guaranteeing the transfer of ownership or the repayment obligation associated with such instruments.
In simple terms, indorsation involves the signing or marking on the back of a negotiable instrument to indicate the transfer of its rights, title, and interest from one party to another. This action typically occurs when the payee or holder of the instrument wishes to transfer its ownership or collect payment from a third party.
Indorsation can take different forms, including a blank indorsement (also known as an endorsement in blank), wherein the instrument's holder signs their name on the back without specifying a particular recipient. This type of indorsement effectively turns the instrument into a bearer paper, meaning whoever possesses the instrument can negotiate or cash it.
Other types of indorsements include special indorsements, where the holder designates a specific recipient, restrictive indorsements, which limit the further negotiation of the instrument, and qualified indorsements, which disclaim liability for certain aspects of the instrument.
Overall, indorsation facilitates the transferability and circulation of negotiable instruments, allowing for the secure and efficient movement of payments or obligations between parties. It provides legal documentation to prove the rightful ownership of the instrument and ensures that subsequent transferees can enforce their rights in case of any disputes or issues.
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Sanction or approval; that which is written on the back, as of a bill of exchange.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for INDORSATION
- undorsation
- jndorsation
- kndorsation
- ondorsation
- 9ndorsation
- 8ndorsation
- ibdorsation
- imdorsation
- ijdorsation
- ihdorsation
- insorsation
- inxorsation
- incorsation
- inforsation
- inrorsation
- ineorsation
- indirsation
- indkrsation
- indlrsation
Etymology of INDORSATION
The word "Indorsation" comes from the Latin word "indorsatio", which is derived from the verb "indorsare". "Indorsare" is a combination of the prefix "in-" meaning "into" or "upon", and "dorsum", meaning "back". Therefore, the etymology of "Indorsation" suggests an action of writing or placing something upon the backside of a document or object. The term is commonly used in legal and financial contexts, referring to the act of endorsing or signing the back of a check, bill of exchange, or other negotiable instrument. Over time, "indorsation" evolved into its modern spelling "endorsement" while retaining a similar meaning.
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