The signature of the payee or holder on the back of a cheque/draft is called an endorsement.
Kinds of Endorsement.
01. Blank endorsement
02. Full endorsement
03. Partial endorsement
04. Restrictive endorsement
05. Conditional endorsement
06. Endorsement Sans Recourse
07. Facultative endorsement
Blank Endorsement :
When the endorser signs his name only (Mashud)
Full Endorsement :
When the endorsement adds the name of the endorsee above his signature, with a direction to pay him or to
his order. A blank endorsement may be converted into full endorsement by writing the name of the endorsee over the signature of endorser. It is also called special endorsement : Pay to M/S. Liberty Impex.
Restrictive Endorsement :
Where the endorser prohibits further negotiation.
Partial Endorsement :
Where only a part of the amount of the bill is transferred to a particular endorsee.