Restrictive Endorsement Legal Meaning and Definition

Here is a simplified definition of the legal term Restrictive Endorsement.

Restrictive Endorsement (noun): A restrictive endorsement is a limitation or stipulation that is written on the back of a financial document, such as a check, to specify the conditions of the document's usage. This type of endorsement restricts or limits the ability to freely transfer the document to any individual except the one explicitly named in the endorsement. The endorsement is implemented through a signature at the back of the financial instrument stating the said restriction.