endorsee

The bank teller hands the check to the endorsee.

Definition

1. Noun:
   • Person to whom a negotiable instrument is transferred: An "endorsee" is the individual or entity to whom a cheque, bill of exchange, or other negotiable document is legally transferred by endorsement (the act of signing the back of the document). This person is entitled to receive payment or enforce the instrument.

Usage Examples

• (The person who received the cheque through endorsement cashed it.)
• (She was the party to whom the note was transferred.)
• (The recipient of the transferred document must acknowledge receipt.)

Advanced Usage

• "Holder in due course": An endorsee who takes a negotiable instrument in good faith, for value, and without notice of any defect may become a "holder in due course," gaining special legal protections.
  • The endorsee was considered a holder in due course because he accepted the cheque without knowledge of any dispute. (The recipient had legal priority over other claimants.)
• "Endorsee vs. Endorser": The endorsee is distinct from the endorser (the original holder who signs the document to transfer it).
  • The endorser signed the cheque, and the endorsee deposited it into her account. (The signer transferred it; the recipient deposited it.)

Variants and Related Words

• Endorser (n): The person who signs a negotiable instrument to transfer it to another party.
  • The endorser must sign exactly as their name appears on the document. (The transferor must sign correctly.)
• Endorsement (n): The act of signing the back of a negotiable instrument; also, a signature or statement of approval.
  • The endorsement on the cheque was illegible, so the bank refused it. (The signature was unclear.)
• Endorse (v): To sign the back of a cheque or document to transfer ownership or show approval.
  • She endorsed the cheque to her brother. (She signed it over to him.)

Synonyms

• Transferee: A person to whom property or rights are transferred.
• Assignee: A person to whom a right or liability is legally transferred.
• Bearer (in some contexts): The person who holds a negotiable instrument, though this differs in legal nuance.

Related Idioms

• No specific idioms exist for "endorsee", as it is a technical legal term. In financial contexts, it is used literally.

Note

• "Endorsee" is primarily a legal and financial term. It is not used in everyday conversation but is essential in banking, commerce, and law. The spelling "indorsee" is an alternative, though less common in modern usage.