Restrictive endorsement


Also found in: Legal.

Restrictive endorsement

An endorsement signature on the back of a check that specifies the conditions under which the check can be transferred or paid out.

Restrictive Endorsement

An endorsement on a check with restrictions. An endorsement is a signature on the back of a check stating that the payee has consented to receive the funds from the payer. A restrictive endorsement states the circumstances under which the payee will accept the funds under the signature.
References in periodicals archive ?
The check had a restrictive endorsement stating that by cashing the check Shiner would accept it as full payment.
The Restrictive Endorsement validation feature is designed to reduce the risk of a check being deposited multiple times at different financial institutions, taken to a check casher or even being accidentally deposited through mobile deposit again at a later date.
One procedure to reduce the potential trust fund liability is to place a restrictive endorsement on the back of each check, which may be worded as "Payment for the amount of $ -- to be applied to Trust Fund Only for the time period --.
In such cases, if the business is operating, the corporation can voluntarily designate that tax payments be directed first to trust fund taxes, for which the president would be personally liable, by including a restrictive endorsement on the back of the check stating: "To be directed for payment of trust fund taxes of XYZ Corporation.
But I suspect a growing number will be restrictive endorsement bonus arrangements (REBAs), which typically use vesting schedules to keep key execs loyal.
On the back of the check as a restrictive endorsement.
One version of the REBA calls for the employee to place a restrictive endorsement on the policy.
But like NYLEX, Nautilus does a robust business in IRC Section 162 executive bonus plans and restrictive endorsement bonus arrangements, or REBAs.
The restricted executive bonus arrangement combines an executive bonus with a restrictive endorsement on an insurance policy issued on the executive's life.
One additional note: Had the client been concerned that a bonus plan is not putting the so-called "golden handcuffs" on the executives, we could have added a restrictive endorsement to the policy.
If the profitability of one of these new entrants' starts to decline, it is likely that they will implement controls into their products, often either via more aggressive risk control activities, restrictive endorsements, higher deductibles, higher premiums, or the elimination of some products all together.
Florida agents must thoroughly review and understand the breadth and implications of these restrictive endorsements and, where alternative coverage is not available, ensure that their policyholders are fully informed.