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Can you summarize IACO 554.3206?
UNIFORM COMMERCIAL CODE > Restrictive endorsement.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, addresses the concept of restrictive endorsement. It provides several rules regarding the effectiveness and impact of endorsements on the transfer and negotiation of instruments. The document states that an endorsement limiting payment or stating a condition does not prevent further transfer or enforcement of the instrument. It also outlines the consequences for different parties involved in the purchase, collection, or payment of an instrument with specific endorsements. Additionally, the document clarifies the rights and liabilities of purchasers and payor banks in relation to endorsements made for the benefit of the endorser or another person. It concludes by stating that the presence of such endorsements does not affect the status of a purchaser as a holder in due course, unless they have knowledge of breach of fiduciary duty. No specific penalties or exemptions are mentioned in this document.
Whom does it apply to?
Persons involved in the transfer or negotiation of instruments
What does it govern?
Restrictive endorsement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa