Restrictive Indorsement - Definition - Law Dictionary Home Dictionary Definition restrictive-indorsement

Definition :

Restrictive indorsement, prohibits the further nego-tiation of a bill of exchange or promissory note, or cheque, by expressing that 'it is a mere authority to deal with the bill, etc., as thereby directed, and not a transfer of the ownership thereof, as, for example, if a bill be endorsed. ' pay D. only,' or ' pay D. for the account of X.,' or ' pay D. or order for collection.' [Bills of Exchange Act, 1882, s. 35]