Non-transferable endorsements can be further divided into endorsements for collection and endorsements for pledge.
(1) Endorsement for collection refers to an endorsement made by the endorser to entrust the endorsee to collect the payment on his behalf. It is usually written with words such as “for collection” or “value in collection” before or after “Pay to the order of A Bank”. This endorsement only gives the endorsee the right to collect the payment on his behalf. Although the endorsee holds the bill, he does not obtain the ownership of the bill and cannot transfer the rights of the bill, nor can the bill be circulated again.
(2) Endorsement for pledged refers to an endorsement made by the endorser to pledge the debt claim of the bill. During the pledge period, the endorser is still the owner of the bill. If the endorser is unable to redeem it at maturity, the endorsee can become a legitimate holder according to law and can exercise the right of recourse in his own name.
In addition, there is a restrictive endorsement, which refers to an endorsement with restrictive words in the instruction to pay the endorsee to prevent the further transfer of the bill. For example:
For example: Pay to A Co., only
Pay to A bank for account of B Co., (pay to A bank for credit to B company account)
Pay to A bank not negotiable
Pay to A bank not transferable
Pay to A bank not to order