I'll add the fact that this practice has existed for decades. In some cases, the issuing bank has the purchaser add the indorsement, and signing it. Other banks use a rubber stamp. Some will use the check (with this "strange indorsement") as a debit to credit the amount back to the purchaser's account.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8