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RESTRICTIVE INDORSEMENT Definition & Legal Meaning

Definition & Citations:

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.


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