An indorsement may be so worded as to restrict the further negotiability of the instrument, and it is then called a “restrictive indorsement.” Thus, “Pay the contents to J. S. only,” or “to J. S. for my use,” are restrictive indorsements, and put an end to the negotiability of the paper. 1 Daniel, Neg. Inst.

More On This Topic

Link to This Definition
Did you find this definition of RESTRICTIVE INDORSEMENT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary