Draft Endorsement
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cdcs2011
- Posts: 13
- Joined: Wed Dec 29, 2010 8:30 pm
- First Name: cdcs
- Last Name: LL
- Organization: ok
- Filter: Two Plus Two =: 4
Draft Endorsement
Can anyone tell me what the back of the draft states "prior endorsement guaranteed" means?
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
prior endorsement guaranteed
Hi Pal,
this clause, more suitable to cheques endorsement than to draft or bill of exchange, indicated that the paying in bank, asking to deposit the cheque in the account with another bank, is guaranteing that endorsements are correct. Now with the fact that many cheques have to be issued "not transferable" this clause refers only to the cheque's beneficiary.
However this clause is requested by US Banks when you send cheques by cash letter.
Some US Banks authorized banks abroad to effect check truncation directly and to send cheques data by electronic system.
Other Comments appreciated
Ciao
this clause, more suitable to cheques endorsement than to draft or bill of exchange, indicated that the paying in bank, asking to deposit the cheque in the account with another bank, is guaranteing that endorsements are correct. Now with the fact that many cheques have to be issued "not transferable" this clause refers only to the cheque's beneficiary.
However this clause is requested by US Banks when you send cheques by cash letter.
Some US Banks authorized banks abroad to effect check truncation directly and to send cheques data by electronic system.
Other Comments appreciated
Ciao