endorsement

views updated May 17 2018

en·dorse·ment / enˈdôrsmənt/ • n. 1. an act of giving one's public approval or support to someone or something. ∎  a recommendation of a product in an advertisement.2. a clause in an insurance policy detailing an exemption from or change in coverage.3. the action of endorsing a check or bill of exchange.

Endorsement

views updated May 29 2018

ENDORSEMENT

A signature on acommercial paperor document.

An endorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual. The ordinary manner in which an individual endorses a check is by placing his or her signature on the back of it, but it is valid even if the signature is placed somewhere else, such as on a separate paper, known as an allonge, which provides a space for a signature.

The term endorsement is also spelled indorsement. For examples of different types of endorsements, see indorsement.

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