A restrictive indorsement reduces the risk of theft or unauthorized transfer by eliminating the bearer quality of a blank indorsement.

Question

Quizplus · Accepted Answer

A restrictive indorsement limits the ability of the person who receives the endorsed check to negotiate it to someone else. It can only be deposited into the account of the person named in the indorsement, reducing the ability of the check to be stolen or transferred without authorization.

A Restrictive Indorsement Reduces the Risk of Theft or Unauthorized