What is an Indorser?

An indorser is a person who signs their name on the back of a check, draft, or other negotiable instrument to accept responsibility for its payment. The indorsement is a guarantee that the person signing the instrument will pay the amount stated in the document if the original payee fails to do so.

For example, if John writes a check to Jane for $100, and Jane gives the check to Bob to deposit into his bank account, Bob may require John to sign the back of the check as an indorser to ensure that he (John) is responsible for the payment. This way, if Jane fails to pay the amount, Bob can seek payment from John as the indorser.

In some cases, the term "indorser" may also be used to refer to a co-signer or guarantor of a loan or other financial obligation. In this context, the indorser is someone who agrees to take on the responsibility of repaying the debt if the primary borrower fails to do so.