Business, Legal & Accounting Glossary
Additional paper firmly attached to commercial paper, such as a promissory note, to provide room to write endorsements.
A paper attached to a negotiable instrument to enable writing endorsements when the back of the bill is full. An allonge is rare because bills of exchange are no longer very common.
An allonge is necessary when there is insufficient space on the document itself for the endorsements. It is considered part of the commercial paper as long as the allonge remains affixed thereto.
You may want to always include an allonge so that there is plenty of space for people to sign their names on.
The allonge had been included in the documents presented as evidence of the financial transactions that had taken place recently.
Allonges are no longer prevalent because not only are most transfers of funds transacted electronically, those paper instruments requiring signatures would only require a few, eliminating the need for a “signature appendix.”
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This glossary post was last updated: 30th October, 2021 | 0 Views.