Legal Definitions - endorser

Definition: An endorser, also known as an indorser, is a person who transfers a negotiable instrument by signing it. This person is not the maker, drawer, or acceptor of the instrument.

Example 1: John received a check from his client and needed to deposit it into his bank account. He signed the back of the check as an endorser, transferring the ownership of the check to his bank.

Example 2: Sarah needed to borrow money from the bank to start her business. Her friend, Tom, agreed to act as an accommodation indorser and signed the loan agreement as a surety for Sarah.

These examples illustrate how an endorser can transfer ownership of a negotiable instrument, such as a check or a loan agreement, to another party. The endorser's signature on the instrument is a legal endorsement that signifies the transfer of ownership.