When your younger brother signs the back of his paycheck and gives it to you in payment for money he owes you, he has endorsed the check, and you may deposit it in your checking account.

Question

Quizplus · Accepted Answer

A paycheck is a negotiable instrument (a form of commercial paper) that is transferable among businesses and individuals and represents a promise to pay a specific amount. Your brother's signature on the back of the paycheck is referred to as an endorsement and payment on the check is transferred to you (or the bearer of the check) when he signs it.

When Your Younger Brother Signs the Back of His Paycheck