The endorsement is commonly used when the remitter or purchaser has decided not to deliver the check to the payee. The purchaser or remitter delivers the check back to the bank, applies the endorsement language, and signs his or her name below.
This is not a practice sanctioned by the UCC, just an improvisation that has become commonplace.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.