How to Endorse a Promissory Note? Transfer and Endorsement Guide

Promissory note endorsement is the process of transferring the note to another person. In this article, you will find detailed information about promissory note endorsement.

What is Promissory Note Endorsement?

Promissory note endorsement is the signature and writing process that indicates that the note will be transferred. With endorsement, the note can be transferred to another person.

Types of Endorsement

1. Full Endorsement

Endorsement made by specifying the payee of the note.

2. Blank Endorsement

Endorsement made without specifying the payee.

3. Restrictive Endorsement

Endorsement that specifies that endorsement cannot be made.

How to Make Endorsement?

1. Back of Note: Endorsement is made on the back of the note
2. Signature: The person making the endorsement signs
3. Payee: Payee is specified in full endorsement
4. Date: Endorsement date can be written

Right of Endorsement

The right of endorsement belongs to the owner of the note. However, if a restrictive endorsement has been made, endorsement cannot be made.

Conclusion

Promissory note endorsement is an important process for transferring the note. It must be done correctly.