Title III: Cashless money instruments

Endorsement transfers all rights arising from the cheque, in particular ownership of the funds. If the endorsement is blank, the bearer may: 1. fill in the blank, either with his or her name or with the name of another person ; 2. Endorse the cheque again in blank, or to another person; 3. give the cheque to a third party without filling in the blank or endorsing it.

Unless otherwise agreed, the endorser guarantees payment. The endorser may prohibit further endorsement; in this case, the endorser is not liable to any person to whom the cheque is subsequently endorsed.

The holder of an endorseable cheque is deemed to be a rightful bearer if he proves his right by an uninterrupted series of endorsements, even if the last endorsement is blank. Crossed-out endorsements are deemed to be unwritten. When a blank endorsement is followed by another endorsement, the signatory of the latter is deemed to have acquired the cheque through the blank endorsement.

An endorsement on a bearer cheque makes the endorser liable under the provisions governing recourse; moreover, it does not convert the instrument into a promissory cheque.

When a person has been dispossessed of a promissory cheque by any event whatsoever, the beneficiary who proves his right in the manner indicated in article L. 131-22 is only obliged to dispose of the cheque if he acquired it in bad faith or if, in acquiring it, he committed gross negligence.

Persons sued by virtue of the cheque may not raise against the bearer defences based on their personal relationship with the drawer or with previous bearers, unless the bearer, in acquiring the cheque, has acted knowingly to the detriment of the debtor.

Where the endorsement contains the words “valeur en recouvrement”, “pour encaissement”, “par procuration”, or any other words implying a simple mandate, the bearer may exercise all the rights arising from the cheque, but may only endorse the cheque by way of power of attorney. In this case, the debtors may only invoke against the bearer the defences that may be invoked against the endorser. The mandate contained in an endorsement…

An endorsement made after the protest or after the expiry of the time limit for presentation only produces the effects of an ordinary assignment. In the absence of proof to the contrary, an undated endorsement is presumed to have been made before the protest or before the expiry of the time limit for presentation. It is forbidden to backdate orders on pain of forgery.