The ‘Qualified Indorsement’ is the most universal method to confidently apply Performance on Negotiable Instruments, and helps maintain full compliance with UCC 3-402 SIGNATURE BY REPRESENTATIVE. related: Banker’s Acceptance, Accepted for Value, A4V, Discharge, Set-Off, HJR-192, U.C.C. 1-308, 31 U.S. Code § 1501, U.C.C. 3-603, I.R.S. 6334(a)(9).
Where to start? STATE LAW! (Where UCC can actually be enforced)
Here’s an example of the Cover Letter you can use to get started in the right direction. Will it be easy? NO – but it will be a great start and set the foundation for a potential Lawsuit (with you as the Plaintiff) should it come to that.
Simply update all the highlighted areas accordingly, using your State Code/Statute Equivalents.
Here is the UCC BY STATE spreadsheet to help you find the codes for your State which the transaction or business occurred.
Step 1. Indorse the Instrument (Bill, Statement, or any other ‘evidence of a debt), using Blue Ink for the Signature.
Step 2. Download and update the Notice of Acceptance (letter of intent to discharge)
Step 3. Apply the Administrative Process to Maintain Document ‘Chain of Custody’
Click Image for Access to Template (download)
EXAMPLE – Negotiable Instrument (indorsed)
The History & How it Works
What is Performance & How to Do It
Administrative Process Explained as Compared to ‘Chain of Custody’
