Sign your Nature, or your signature, is legally known as an ENDORSEMENT and has the Magic ability to influence your RIGHTS while you exchange VALUE in everyday life. From mortgages, to promissory notes, contracts to personal bank loans, and from credit cards to traffic tickets the way in which you use a MAGIC phrases, or MAGIC LANGUAGE, will greatly influence the outcome of your manifested intentions.
Indorsements (E)ndorsements
indorsement, n. (16c) 1. The placing of a signature, sometimes with an additional notation, on the back of a negotiable instrument to transfer or guarantee the instrument or to acknowledge payment. 2.The signature of notation itself. {and here is where the magic comes in} "The clever indorser can subscribe his or her name under a variety of magic phrases. The code (uniform commercial code) specifies the legal effect of some of these phrases. Qualified indorsement (special) ("without recourse") limit the liability of the indorser if the instrument is dishonored. Restrictive indorsements such as "for deposit only," "pay any bank" and the like set the terms for further negotiation of the instrument. Their main purpose is to prevent thieves and embezzlers from cashing checks. Types Anomalous Indorsement Blank indorsement Restrictive Indorsement Special Indorsement Anomalous Indorsements
Understanding "anomalous indorsements" requires you to remember that indorsements have dual functions in Article 3 of the Uniform Commercial Code (U.C.C) First they are typically a part of the process of transferring and negotiating -negotiable instruments from one person or entity to another. Second, the person or entity who endorses an instrument typically becomes liable on the instrument if it is not paid. Blank Indorsements You have probably cashed a check or deposited it in your account at your bank. (When you did, you transferred and negotiated the check.) In connection with that transaction, you probably signed your name on the bac of the check. Your signature on the back of the check was an "indorsement." UCC 3-204 (a). If you just signed your name, your indorsement is further clasified as a "blank indorsement." UCC 3-206(a). The effect of a blank indorsement on an instrument is to make the instrument payable "to bearer." id When you indorse a check in blank by simply signing your name on the back, anyone who subsequently gets physical possession of the check becomes a holder of the check. If the check was already payable to bearer (e.g. if it was payable to "cash") your indorsement doesn't change the check's status a s a bearer instrument. However, if the check was originally payable to you (or more precisely, "to your order"), your blank indorsement converts the check from being payable to an identified person to being payable to bearer. Restrictive Indorsements Blank an special endorsements are the most common classifications of endorsement, but Article 3 (U.C.C) recognizes other special categories. The one you are most likely to have seen is the "restrictive endorsement." If you add the words "for deposit" or "for collection" to your endorsement, the bank will face potential liability for conversion if you don't get the money represented by that check. U.C.C 3-206(b). (Conversion is a tort with particular application in the negotiable instrument context; ) This means that a bank usually wont cash a check with a special endorsement and will typically require that you deposit any specially endorsed check into your account. Using a special endorsement is a good idea for checks that you plan to deposit in your account. Special Indorsements An indorsement can convert an instrument payable to bearer into an instrument payable to an identified person. This type of indorsement is a "special endorsement" defined in U.C.C. section 3-205. If you are in possession of an instrument check payable to bearer (either because it was originally issued that way of because it was validly indorsed in blank), you can make it payable to an identified person by writing "pay to (JOHN DOE-whomever your trying to pay)" on the back and signing your name. (Note that the magic words "to the order of " are not required for endorsements, as they are for the designation of the original payee.) After you specially endorse the instrument, only JOHN DOE can be a holder of it (if JOHN DOE subsequently indorses the check in blank, it will be converted back into a bearer instrument, so that anyone in possession may be a holder. On the other hand, if John Doe puts a special indorsement on the check, only the person identified in that special indorsement can be a holder (and that person will also have to get possession or further indorse the check in order for anyone else to be a holder). |
Magic Phrases:
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