Commentary

14 Restrictive indorsement

BILLS OF EXCHANGE vol 4(1)
| Commentary

14 Restrictive indorsement

| Commentary

14 Restrictive indorsement

An indorsement is restrictive1 if it prohibits the further negotiation of the bill or expresses that it is a mere authority to deal with the bill as thereby directed, and not a transfer of the ownership of it2. An indorsee pursuant to a restrictive indorsement acquires the right to receive payment of the instrument and the rights of action against any other party to the instrument that the indorser had, but the indorsee may only transfer the instrument and his rights on it to another if the indorsement expressly authorises him to do so

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