If an indorsement has been altered, it should. if correct, be confirmed. An indorse ment of a signature by means of an impressed stamp should be confirmed by a collecting banker.
A banker is not obliged to take an irregular indorsement, and if a cheque is indorsed in such a manner that he is unable to decide whether it is right or wrong. it is safer to return it for confirmation.
An indorsement in pencil is not a sufficient reason for returning a cheque, as it is a valid indorsement, but the use of a pencil for such a purpose should always be discouraged If the person presenting a cheque is unable to write, he should indorse it by mark, his mark being then witnessed, preferably by an independent party. The witness must know the person whose mark he witnesses, and, in addition to signing as witness, must give his own address.
Indorsements are occasionally met with having Mr. or Esq. added to the name I f the name has been written by the right party the indorsement is sufficient, but a collecting banker should confirm it.
In Scotland, when tilt payee is a married woman, the cheque is frequently drawn as " Pay Mrs. Mary Young or Campbell," Young being her maiden name and Campbell the married name. The indorsement is accepted whether signed " Mary Young " or " Mary Campbell." It is a saving of much time and trouble if a collecting banker confirms all indorse ments which he notices are not strictly in order, when he knows that they are all right, before remitting the cheques for collection.
A paying banker should not return a cheque " indorsement irregular " if the objection is merely a frivolous one. A slight variation in the name on a cheque for a trifling amount is not regarded as of so much importance as in the case of a cheque for a larger amount, and a small cheque often receives the benefit of a doubt and is passed with an indorsement not absolutely in order.
An indorsement " J. Brown & Coy.. Ltd., J. Jones, Secretary," is usually accepted, though " Per pro. J. Brown & Coy., Ltd., J. Jones, Secretary," is preferable.
If a payee presents an " order " cheque himself, it is the custom to require him to indorse it, but see PAYEE The payee's indorsement need not neces sarily be the first signature on the back of the cheque, though, of course, it usually is.
A cheque indorsed in France may be signed with the surname only.
There is no authorised form of indorse ment, and in consequence the variations in indorsements are numerous and often puzzling to decide upon. The following is a list of specimens ; in one column are included indorsements which, as a rule, would be passed. either because they are strictly correct or sufficiently accurate to justify their acceptance ; in the other column are shown indorsements which are not generally accepted, either because the? are quite wrong or so doubtful as to arise the cheques bearing them to be returned " indorsement irregular."