INDORSEMENT. That which is written en the back of an instrument in writing and which has relation to it.
Writing one's name on the back of a prom issory note or other negotiable instrument. Partridge v. Davis, 20 Vt. 499.
Written on the back of an original instru ment, or on an "allonge" attached thereto, if there be not sufficient space on the origi nal paper. Fountain v. Bookstaver, 141 Ill. 461, 31 N. E. 17; Crutchfield v. Easton, 13 Ala. 337; Bishop v. Chase, 156 Mo. 158, 56 S. W. 1080, 79 Am. St. Rep. 515. It need not appear that it was physically impossible to indorse on the instrument ; it may be on another paper when necessity or convenience requires it; Crosby v. Roub, 16 Wis. 616, Am. Dec. 720.
An indorsement is generally made pri marily for the purpose of transferring the rights of the holder of the instrument to some other person. It has, however, various results, such as rendering the indorser liable in certain events ; and hence an indorsement is sometimes made merely for the purpose of additional security. This is called an ac commodation indorsement when done without consideration.
It was said by Chief Justice Gibson that "the contract of indorsement is not an inde pendent one, but a parasite which, like the chameleon, takes the hue of the thing with which it is connected. Attached to commer cial paper, it becomes a commercial contract operating as a contingent guaranty of pay ment and a transfer of the title where the paper is negotiable; attached to any other chose in action, it becomes an equitable as signment of the beneficial interest without re course to the assignor" ; Patterson v. Poin dexter, 6 W. & S. (Pa.) 227, 234, 40 Am. Dec. 554, quoted with approval in National Union Bank v. Shearer, 225 Pa. 470, 480, 74 Atl. 351, 17 Ann. Cas. 664.
A blank indorsement is one in which the name of the indorser only is written upon the instrument. It is commonly made by writing the name of the indorser on the back; Folwell v. Beaver, 13 S. & R. (Pa.) 315; but a writing across the face may an swer the same purpose ; Folger v. Chase, 18 Pick. (Mass.) 63; 16 East 12. Its effect is to make the instrument thereafter payable to bearer; Byles, Bills *151; Neg. Instr. Act § 131. If an instrument payable to bearer is indorsed specially, it may nevertheless be further negotiated by delivery. id. § 129.
The holder may convert a blank indorse ment into a special indorsement by writing over the signature of the indeiser in blank any contract consistent with the character of the indorsement. id. § 130.
A conditional indorsement is one made subject to some condition without the per formance of which the instrument will not be or remain valid. 4 Taunt. 30. A bill may be indorsed conditionally, so to impose ou the drawee who afterwards accepts a liability to pay the bill to the indorsee or his transferees in a particluar event only; Byles, Bills *150. An indorsement on a note, making it payable on a contingency does not affect its negotiability ; Tappan v. Ely, 15 Wend. (N. Y.) 362.
But the person required to pay the instru ment may disregard the condition and make payment to the indorsee or his transferee, whether the condition has been fulfilled or not. Neg. Instr. Act § 136.
An indorsement in full, or a special in dorsement, Is one in which mention is made of the name of the indorsee. Chitty, Bills 170. The omission of the words "or order" is not material, for the indorsee takes it with all its incidents, including its negotiable quality ; Byles, Bills •151. The omission of the words "or order" in a special indorse ment will not restrain the negotiability of a bill; 2 Burr. 1216; 1 Stra. 557.
A qualified indorsement is one which re strains or limits, or qualifies, or enlarges the liability of the indorser, in any manner dif ferent from what the law generally imports as his true liability, deducible from the na ture of the instrument. Chitty, Bills 261; 7 Taunt. 160. The words commonly used are sans without recourse; Upham v. Prince, 12 Mass. 14. An indorsement with out recourse, or at the indorsee's "own risk," not expose the indorser to any liability ; Lawrence v. Dobyns, 30 Mo. 196; Cady v. Shepard, 12 Wis. 639; Fitchburg Bank v. Greenwood, 2 Allen (Mass.) 434; Craft v. Fleming, 46 Pa. 140. But such an indorse ment warrants the genuineness of all prior signatures; Dumont v. Williamson, 18 Ohlo St. 516, 98 Am. Dec. 186; that the indorser has title to the note; Mays v. Callison, 6 Leigh (Va.) 230 ; that the note is valid be tween the original parties, and not illegal or without consideration ; Blethen v. Lover ing, 58 Me. 437; Challiss v. MeCrum, 22 Kan. 157, 31 Am. Rep. 181; and that the parties were competent to contract ; id. The assign ment without recourse leaves the assignor liable as vendor; Bevan v. Fitzsimmons, 41) Ill. App. 108.