Which endorsement includes directions that specifically mention payments being made only under certain conditions?

The correct choice is the conditional endorsement because it specifically indicates that the payment of the check is contingent upon certain conditions being met. This type of endorsement typically includes phrases such as "payable only if..." or "if and when..." which clearly signal that the recipient can only collect the funds under specified circumstances.

This is significant in a banking context, as it provides a layer of security and control over the funds being transferred. It ensures that the payment cannot be made freely; instead, the payee must fulfill the conditions outlined for the transaction to be completed. This distinguishes it from other types of endorsements, like blank endorsements, which allow for unrestricted transfer of the check, or restrictive endorsements, which limit what can be done with a check but do not impose conditions for its payment.