New York Allonge
Description
Form popularity
FAQ
Using an Allonge for the Endorsement The allonge must be permanently affixed to the related note and must clearly identify the note by referencing at least the name of the borrower(s), the date of the note, the amount of the note, and the address of the security property.
An allonge to promissory note is different from an assignment. An assignment in this context is what gives a party the legal designation and right to move forward with legal action on a property, whereas an allonge is an endorsement that allows you to collect on the promissory note.
An allonge is considered an extension of the instrument itself. The purpose of an allonge in most loan transactions is to transfer the negotiable instrument to the lender if there has been an event of default and the lender is enforcing its rights under the credit agreement.
The Seller may use an Allonge to endorse a Note if the following conditions are met: The Allonge is permanently affixed to the Note. The Allonge references the Borrower's name, the property address and the original principal balance of the Note. The form of the Allonge, and its use, complies with all applicable laws.
In order for the allonge to have legal enforceability, any new endorser must inscribe and sign their endorsement onto the allonge.
An allonge is a sheet of paper that is attached to a negotiable instrument, such as a bill of exchange. Its purpose is to provide space for additional endorsements when there is no longer sufficient space on the original instrument. The word ?allonge? derives from the French word allonger, which means ?to lengthen."
However, an undated but signed promissory note is valid and effective because the signature date is not an essential element of a promissory note. It is highly recommended that the promissory note is dated when signed for purposes of clarity, however it is not an essential element.
An allonge is considered an extension of the instrument itself. The purpose of an allonge in most loan transactions is to transfer the negotiable instrument to the lender if there has been an event of default and the lender is enforcing its rights under the credit agreement.
