Endorsement is ... Types of endorsement. Mortgage endorsement

Gradually, our usage includes an increasing number of borrowed foreign words. We understand the meaning of some of them well: the wide distribution of the term allowed, as it is called, "from the cradle" to remember its meaning. Some of the words are revealed to us on a subconscious level: they have heard somewhere, associated with something. But there is a category of concepts about whose meaning it is very difficult to guess. These include the term "endorsement". This word is very often used in the sphere of banking and trade in securities. What does it mean? What are its subspecies? Where does this concept come from? Let's see.

Where are the origins?

Endorsement is a concept whose origins originate from Latin roots. The original "progenitor" of this term was the word indorsum, which translates as "located on the back". Later this concept was borrowed from the Latin language by the Italians. They were followed by the Germans and the French. At the same time, for each country the application of the term in question was the same: it was used in the sphere of trade. Thus, during procedures with securities, great importance was paid to operations with bills and checks. At the same time, on some of them, on the reverse side a transfer inscription was put on a certain character, which was an endorsement. An example of the successful conduct of operations in securities trading pushed the rest of Europe, and later Asia and America adopted the way of managing nominal and "bearer" checks and bills. Thus, the endorsement became an integral part of the market relations of the whole world.

Termination of the term

Let's see what in the legal sense means the concept under consideration. There are several different interpretations of this term. Endorsement is an inscription of a transferring character affixed to the back of a check, a bill (only transferable) or any other security, meaning the change of ownership of that paper by one person to another. That is, the person who left his initials on the underside of the document has the right to receive the payment specified in it. It is noteworthy that an endorsement of a bill is not just a possible change of ownership: a bill of exchange can change its holders an unlimited number of times. In this case, according to the rules of trading operations, the inscriptions on the reverse side are placed in turn from the top down. That is, the last appeared note and testifies to the real owner of the paper.

In addition, an endorsement is a special signature that vests the document with legal force. However, this term is used not only in the securities market. The term "endorsement" is widely used in insurance. So, sometimes in these organizations, the conditions for implementing various procedures vary. Therefore, on already issued, but valid policies and insurance certificates, the necessary corrections and adjustments are made. This also reveals the concept of endorsement.

Regulation and participants

All the rules and the procedure for carrying out the endorsement are regulated by a document, the title of which is Regulation No. 104/1341 "On Transfer and Promissory Notes". This treatise was approved on August 7, 1937 by the Central Executive Committee of the then existing Soviet Union.

The procedure for conducting the transfer of rights to securities takes place in the presence of two parties. The first - the endorser - gives the other individual all the powers to use a bill or check, on the back of which an endorsement is affixed. This person after the transfer of rights, of course, has no opportunity to challenge the transaction or return the security back. The second participant in the procedure is the endorsee. He becomes the holder of all the rights listed in the document.

The necessary conditions

In order for the inscription in question to be valid, it must comply with the following requirements:

1. An endorsement should not contain a list of any duties and conditions with respect to the endorser and endorsee or to third parties. That is, this signature should be simple.

2. Unconditional is the second criterion for the recognition of an endorsement to be eligible. We will explain: no real or future events or actions should affect the validity of the inscription.

3. An endorsement must transfer all rights on the security from the previous owner to a new one. Then the inscription is called complete. If the endorsement does not transfer all rights, it is called partial and has no full legal effect.

Only when these three requirements are met, the transfer of a security and its power to a new owner is truly legal.

Where do I sign?

The endorsement procedure is carried out in writing, and the location of the inscription may be the reverse side of the bill or its supplementary sheet, which is attached directly to the security and is called "allonge".

No other documents indirectly or directly evidencing the transfer of rights under a bill are not recognized as valid and do not indicate an endorsement endorsed. A mandatory attribute of the action in question is the availability of an autograph of the holder of the security. In some cases, the presence of the surname and initials of the new owner of the promissory note - the endorsee - is necessary. However, this condition is mandatory only for certain categories of the legal signature in question.

The most common form

Let's see what kinds of endorsement there are. Allocate the following categories: conventional, blank, prefective and hypothecary endorsements.

Let's start with the first one. It is an ordinary endorsement. This type is a record with the contents of the initials and the name of the person (the new holder of the bill), by order of which payment must be made. The category in question also has such names: "nominal" and "full". Examples of such a variety are the following entries:

1. The billholder - Anapurna AA
Pay the order Babkin BB.
07/03/2014 signature of A.A. Anapurna

2. To pay the order to PUE "Anapurna"
07/03/2014 Signature of I.I. Ivanov

Bearer

The second category is a blank endorsement. This kind is just the exception, where the initials of the person, on whose orders the bill should be paid, are not stamped. The second name of this variety is the concept of "order". That is, a blank endorsement is a category of a legal record, in the implementation of which any person who provided the document can present the right to receive payment on a security. In this case, the bill holder has the opportunity to write in the empty field both his name and the name of an outsider. In addition, he can endorse (transfer) the bill to a third party, using a conventional endorsement or blank. Or the holder has the right to deliver the document to an outside person without filling in any fields.

An example of an endorsement of this kind will be:
To pay an order _______________________
Director of PUE "Anapurna" signature B.B. Babkin
July 3, 2014 the press

Chargé d'affaires

The third type of the record in question is the endorsement endorsement. This category is slightly different from the previous ones. Thus, with the endorsement endorsement, the endorsee receives not the rights to a bill, but the power to exercise them. That is, he becomes the attorney of the holder of the security. After this operation, the endorsee has the opportunity to present and receive an acceptance / visa / payment on a bill. At the same time, his powers are limited by the conditions that the holder of the security indicated.

Example:
Pay order Anapurna A.A. As a trusted
Director of PUE "Anapurna" signature B.B. Babkin
July 3, 2014 the press

Instead of rights - ensuring

A mortgage endorsement is also a fairly common type of endorsement. It is also called a security one. That is, the endorsee receives the bill as a guarantee that the endorser will fulfill his obligations to him. Neither the rights nor the power to use a security on a new holder are transferred.

Example:
Cash to secure obligations under the agreement of 01.01.2014 No. 1 to the order of PUE "Anapurna"
Director of LLC "Odin" signature OO. Olegov
July 3, 2014 the press

Restricting rights

Any kind of endorsement may be subject to reservations. Only an endorser may add them to the text of the entry. This, in turn, affects its position in the subsequent chain of relations. Notes can be of the following form:

1. Rect-reservation. It has the form: "pay only _____. I. O._____ "," pay _____ F. I. O._____ without the right of endorsement "," pay _____ F. I. O._____, but not to his order, "and so on.

These are quite common rekto-reservations. Such notes give the full independence of the endorser from the subsequent responsibility to persons for whom the issued bill may be endorsed, but in no way exempts from immediate obligations to the immediate endorsee.

An example of such a reservation may be:
Pay the order Ivanova II. Without the right of endorsement
07/03/2014 Signature of I.I. Ivanov

2. A second type of reservation is non-negotiable. With its help, the endorser can completely exclude himself from future relations with respect to bill rights. It can look like "pay the order _____ F. I. O._____ without turning to me. " Thus, the endorser removes all responsibility for payments and acceptances not only to third parties, but also to the endorsee.

An example is:
Pay the order Ivanova II. Without turning to me
07/03/2014 Signature of I.I. Ivanov

additional information

All endorsements must be written clearly and legibly. In this case, all impressions of seals should be clearly visible and fully correspond to the name of the legal entity or individual entrepreneur represented in the entry. If, however, when the endorsement has been filled with blots, corrections or errors, it should be crossed out with one line and begin to be refilled. Such a record does not have legal force and is recognized as invalid.