Conversion of indorsement in blank into indorsement in full (Endorsement chain)
Full Text
Conversion of indorsement in blank into indorsement in full.—If a negotiable instrument, after having been indorsed in blank, is indorsed in full, the amount of it cannot be claimed from the indorser in full, except by the person to whom it has been indorsed in full, or by one who derives title through such person.
Plain English Summary
Determines that if a blank-endorsed instrument is later endorsed in full, only the full endorsee or their successors can claim payment from that full endorser.
Key Legal Elements
- Applies when a blank-endorsed instrument is subsequently endorsed in full
- The full endorser is only liable to the specified endorsee or parties deriving title through them
- Protects the full endorser from claims by other bearer holders
Practical Note
Protects the full endorser. If B signs a blank cheque (blank endorsement) and C writes a full endorsement 'Pay D' (full endorsement), C is only liable to D or anyone claiming through D. C is not liable to any random bearer who gets the cheque, because C restricted their liability to D.
हिंदी पाठ
निरंक पृष्ठांकन का पूर्ण पृष्ठांकन में परिवर्तन (पृष्ठांकन श्रृंखला)।—यदि कोई परक्राम्य लिखत, निरंक पृष्ठांकित किए जाने के बाद, पूर्ण रूप से पृष्ठांकित (indorsed in full) किया जाता है, तो उसकी राशि का दावा उस पूर्ण रूप से पृष्ठांकित करने वाले व्यक्ति (indorser in full) से नहीं किया जा सकता है, सिवाय उस व्यक्ति के जिसे इसे पूर्ण रूप से पृष्ठांकित किया गया है, या जो ऐसे व्यक्ति के माध्यम से स्वत्व प्राप्त करता है।