Question

What type of endorsement is illustrated by the following example:

Answer 1

When receiving a check from someone, you'll see that there are lines on the back. Those lines are for the check to be endorsed so you can cash it or deposit your money. Most of the time you'll just sign the back to endorse it and put it in your account or get money in return. However, there are special cases that can show where the money should go. Here are different types of endorsements:

1. Blank endorsements have just your signature on the back. Anyone can cash or deposit a check with this endorsement.

2. Restrictive endorsements have "For Deposit Only" on the first line, then your signature below that. This type of check can only be deposited, not to be cashed for money.

3. Special endorsements are for giving your check to another person. This check can only be deposited or cashed by the person designated on the back. For this endorsement, you would write "Pay to the order of" and then the person's name you want to give the check to. You would then sign your name underneath that. 

As seen in your question, Isis Love is signing it as a special endorsement<em />. She is giving her check to Mike Lopez so his name follows "Pay to the order of". The numbers at the bottom would represent the bank account number.