A depository bank receiving a check with a restrictive indorsement, such as "for deposit " must always honor the restriction.

Name: A depository bank receiving a check with a restrictive indorsement, such as "for deposit " must always honor the restriction.
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Question

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A restrictive indorsement, like "for deposit only," legally restricts how the check can be further negotiated or processed, obligating the depository bank to comply with the specified restriction.

A Depository Bank Receiving a Check with a Restrictive Indorsement