What is an endorsement found on the back of a check indicating the new owner of the check called?

When a check is endorsed on the back to indicate a new owner, this is referred to as a special endorsement. This type of endorsement specifies the individual or entity to whom the check is being transferred, effectively allowing only that designated person or company to cash or deposit the check. It typically includes a signature along with a statement such as "Pay to the order of [new payee's name]."

In contrast, restrictive endorsements place limitations on how the check can be handled, often indicating that it can only be deposited into a specific account or for a specific purpose—although they do not transfer ownership. The without recourse endorsement serves to limit liability for the endorser should the check bounce, but it does not transfer ownership separately. General endorsements simply involve signing the name on the back of the check without specifying a new payee, leaving it more open-ended. Understanding these distinctions is crucial for managing and processing checks correctly in accounts and finance.