Legal Definitions - full indorsement

Definition: Full indorsement is a type of indorsement where a person signs on the back of a negotiable instrument, such as a check, to transfer or guarantee the instrument or to acknowledge payment. It can be either an irregular indorsement or a special indorsement.

Example: Let's say John receives a check from his friend Tom for $100. If John signs the back of the check and writes "Pay to the order of Sarah," it becomes a full indorsement. Sarah can now deposit the check into her account or cash it.

This example illustrates how a full indorsement can transfer the ownership of a negotiable instrument from one person to another.