Only the payee's bank can acquire the rights of a holder and negotiate a check indorsed by the payee "For deposit only."

Name: Only the payee's bank can acquire the rights of a holder and negotiate a check indorsed by the payee "For deposit only."
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A check indorsed "For deposit only" is a restrictive indorsement, which means that the check can only be deposited into the payee's account. The payee's bank acquires the rights of a holder and can negotiate the check to the drawee bank.

Only the Payee's Bank Can Acquire the Rights of a Holder