Sec. 37. Effect of restrictive indorsement; rights of indorsee. - Act 2031

A restrictive indorsement confers upon the indorsee the right:

(a) to receive payment of the instrument;
(b) to bring any action thereon that the indorser could bring;
(c) to transfer his rights as such indorsee, where the form of the indorsement authorizes him to do so.

But all subsequent indorsees acquire only the title of the first indorsee under the restrictive indorsement. (Negotiable Instruments Law; Act 2031)

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