How to make a bill of exchange endorsement?

Article by: Santiago Monroy Tercero | Last update: April 10, 2022
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In order to carry out an endorsement, it must be a bill of exchange “to order”. If a bill of exchange “not to order” is specified, the drawer may not endorse it to another person. In addition, there is no partial endorsement, that is, transmitting part of the letter.

How is a bill of exchange endorsed?

The way to endorse a bill of exchange would be as follows: Record the endorsement in the bill using the word “by endorsement” or equivalent. Guarantor’s signature. Indicate who the guarantor is (in the absence of an indication, it will be understood that it is the acceptor and, failing this, the drawer).

How to fill out an endorsement?

The endorsement must contain the annotation: “Pay to” indicating the name of the beneficiary. A particular case is the bearer endorsement, also known as “blank endorsement”. In this type of document, the name of the new beneficiary does not appear, but only the signature on the back of the endorser.

How is a bill of exchange endorsed in Colombia?

The property endorsement

It is the simple transfer of the right that the drawer has over the bill of exchange, and which, with his signature on the security, evidences his willingness to assign that credit in favor of the endorsee and the property of the security.

How to fill in the back of a bill of exchange?

In this space, the person who is endorsed will be entered with the name and surnames or company name. If it remains blank, it will be understood that it is the one who accepts the letter and, if the drawee does not accept the letter, it will be the drawer. The day, month and year in which the guarantee is provided will be indicated.

22 related questions found

What kind of information appears on the back of a bill of exchange?

The Reverse or Back

Endorsement data: In the event that the takers of the letter decide not to wait for expiration and make endorsements by creating a chain, all the data of the endorsers, name, surname, date, signature and address, must appear here.

What is the issue date of a bill of exchange?

Release date, that is, the time the bill of exchange was issued. Due date, date on which the drawee, who has to pay, must make the payment.

What is the endorsement and examples?

Endorsing is a specific procedure for the transmission of documents that contain a right to collect a debt. The endorsement is the declaration of the creditor in front of his debtor asking him to pay the debt to a different person and that is made in the document that contains the debt.

What is the endorsement give an example?

An example of an endorsement could be the following. A person receives a check from his company for a certain amount of money. That person owes money to another and decides to pay him through his own check and let him collect the amount.

What are the parts of an endorsement?

Two parties are involved in the endorsement: the person in charge of carrying it out is called the endorser, who is the first beneficiary of the security; and the second beneficiary to whom the endorsement is addressed is designated as endorsee.

How is an endorsement made?

The endorsement is made with a written reference in the title itself, or in an annex, indicating “Pay to:” and adding the name or business name of the new beneficiary, the date and the signature of the endorser, which is what legitimizes the transfer. delivering the original to the new owner.

How to fill out a check on the back to deposit?

If the check is for endorsement, the top corner on the back should be marked “For Deposits Only.”

Full name and address of the beneficiary. Date on which it was completed. Amount to be collected by the beneficiary, indicated in numbers and letters. Name of the financial institution.

What is accepting and endorsing a bill of exchange?

The endorsement can be defined as an accessory and inseparable clause of the bill of exchange by virtue of which the exchange creditor puts another creditor in its place, within the bill of exchange, be it limited or unlimited.

What happens if a bill of exchange is not accepted?

Without the acceptance, the drawee will not be obliged to pay the bill of exchange, regardless of the actions that may be brought against him for refusal to sign the bill. If the drawee does not accept the letter, the beneficiary of the bill of exchange or holder may go against the drawer to claim payment.

What are the characteristics of the endorsement?

The endorsement can be made blank, with the sole signature of the endorser. In this case, any holder can fill in his name or that of a third party, the blank endorsement or transfer the title without filling out the endorsement. The bearer endorsement produces the effects of the blank endorsement.

What is the importance of the endorsement?

By virtue of the endorsement, the endorsee acquires the rights arising from the title. It must be borne in mind that although the acquisition of the title derives from that of the transferor, the certificated possession of the acquirer is considered original based on autonomy.

What is the back of a sheet?

Obverse (from the Latin anteversus, composed of before, in front, and versus, turned) is the face or face that is considered main in coins and medals because it bears the bust or effigy of the king, prince, person, currency. For this reason the obverse is also often called face.

What are the parts of a bill of exchange?

For a bill of exchange to be legally valid, the document must have at least the following characteristics:

    Specify the place of issue.Denomination of the currency in which it was issued.Amount in letters and numbers.Date on which the document was issued.Expiration date.Issuer data (Librador).

What does deliverer mean?

The “drawer”: person who issues the bill of exchange and, therefore, who orders the payment to be made. The “drawn”: is the person who has to pay the bill of exchange. When the drawee accepts the letter is called “acceptor”.

What does the act of accepting a bill of exchange mean?

The “acceptance” of a bill of exchange implies the declaration of the drawee (debtor) in the bill of exchange itself, assuming, unconditionally, the payment obligation contained therein on the due date.

Who has to accept the bill of exchange?

Who should accept the bill of exchange? At the time of formalization of the bill of exchange, the drawee may or may not accept the payment order given by the drawer and if he accepts it, he will be obliged to do so. In this case, the drawee will be called the acceptor.

Who must present the bill of exchange for acceptance?

Who is involved in a bill of exchange? The drawer or drawer (person who issues the bill), drawee (person who is ordered to pay the bill) and acceptor (same drawee but once he has accepted the bill).

What is written to a check to cash it?

There is a variety of checks, although most have similar and specific characteristics, for example, they must bear the name and contact of the person who issues the check, the name of the state entity of the financial institution that issues the check, etc.

What are the data to endorse a check?

The following information must be written on the back: Name and signature of the person who makes the endorsement; that is, the endorser, who is the one who transfers the rights to another person. Name and signature of the endorsee; that is, who receives the benefits of the check (to whom the check has been endorsed.)

What characters participate in the endorsement?

acceptor, subscriber, drawer, endorser or guarantor of bills of exchange.

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