Restrictive Indorsements

Restrictive Indorsements. An indorsement is restrictive which either: (a) Is conditional; or (b) Purports to prohibit further transfer of the instrument; or (c) Includes the words “for collection,” “for deposit,” “pay any bank,” or like terms signifying a purpose of deposit or collection; or (d) Otherwise states that it is for the benefit or use of the indorser or of another person. Source: PL 3-56, § 1 (§ 3205).