Restrictive endorsement - sustany/dvg GitHub Wiki

A restrictive endorsement is a conditional guaranty of a transfer of a negotiable instrument. That is, an endorsement that takes effect only on the occurrence or non-occurrence of another act or event. Also spelled �restrictive indorsement.� The Uniform Commercial Code � 3�206 lays out generally accepted rules on restrictive endorsements. For example, � 3�206(a) prevents a restrictive endorsement from being effective beyond the payment for which the endorsement applies.