Qualified Endorsement

Endorsement (signature on the back of a check or other Negotiable Instrument transferring the amount to someone other than the one to whom it is payable) that contains wording designed to limit the endorser's liability. "Without recourse," the most frequently seen example, means that if the instrument is not honored, the endorser is not responsible. Where qualified endorsements are restrictive (such as "for deposit only") the term restricted endorsement is preferable.