Revised Laws of Saint Lucia (2021)

358.   Restrictive indorsement

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    (1)   An indorsement is restrictive which prohibits the further negotiation of the bill, or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as, for example, if a bill be indorsed “Pay D only,” or “Pay D. for the account of X,” or “Pay D. or order for collection.”

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    (2)   A restrictive indorsement gives the indorsee the right to receive payment of the bill and to sue any party thereto that his or her indorser could have sued, but gives him or her no power to transfer his or her rights as indorsee unless it expressly authorise him or her to do so.

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    (3)   Where a restrictive indorsement authorises further transfer, all subsequent indorsees take the bill with the same rights and subject to the same liabilities as the first indorsee under the restrictive indorsement.