Sec. 36. When indorsement restrictive. - Act 2031

An indorsement is restrictive which either:

(a) Prohibits the further negotiation of the instrument; or
(b) Constitutes the indorsee the agent of the indorser; or 
(c) Vests the title in the indorsee in trust for or to the use of some other persons.

But the mere absence of words implying power to negotiate does not make an indorsement restrictive. (Negotiable Instruments Law; Act 2031)

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