What is restricted endorsement?

Answer 1

It means that the endorsement (usually pertaining to a signature granting some kind of permission) is restricted to whatever limitations the signer places upon it.

Answer 2

An indorsement (or sometimes, endorsement) is the legal act authorizing the transfer of a financial instrument in accordance with the terms of the instrument. For example, when the person to whom a check is made payable signs the check, you are authorizing the entity making the payment (e.g., a bank) to pay the check proceeds to you. If the payee does not want to receive the proceeds immediately, then he or she may indorse the check over to the bank in which the payee has an account, and direct the bank to deposit the funds into the account of his or her choosing. A restricted indorsement places restrictions on how the next holder can apply the funds. For example, if a person wants to deposit the proceeds of a check into a specific account, the payee may indorse the check with the restriction "for deposit only into my ____ account". Without the restrictive indorsement, the paying bank can theoretically issue cash to the account holder, or credit the account holder's account or accounts of the bank's choosing (although as a practical matter, this is generally not done).

Answer 3

A restricted endorsement on a check limits how the check can be cashed or deposited. It includes a specific instruction written on the back of the check restricting how it can be processed. This could be for deposit only, to a specific account, or to a specific payee.