What is required to indicate a conditional endorsement?

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A conditional endorsement is used when the endorser wishes to specify certain conditions under which the endorsement is valid. This typically means that the check can only be cashed or deposited if specific criteria are met. For example, if someone endorses a check to another person but indicates that it can only be presented to the bank once a certain event occurs, this written instruction is crucial.

Including instructions for conditions on the endorsement clearly communicates these stipulations to the bank, ensuring that the check is processed according to the endorser's wishes. This adds a layer of protection for both the endorser and the recipient, as it specifies the exact terms for the use of the endorsed check.

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