Allonge
Definition:
An Allonge is a separate sheet of paper attached to a negotiable instrument, such as a promissory note or check, that provides space for endorsements when there is no room left on the original document. It serves as a legal extension of the instrument, allowing for the transfer of rights or ownership through signatures or endorsements. The allonge must be physically affixed to the original note to be valid. It plays a key role in financial and real estate transactions involving the assignment of debt instruments.
Allonge Information
Allonges are most commonly used in the transfer or assignment of promissory notes, especially in mortgage and commercial lending. When a note is sold or transferred multiple times, lenders or investors use an allonge to record each endorsement without altering the original document. The attachment ensures a clear chain of title for the instrument, which is essential for enforcing repayment rights. In modern financial practice, allonges help maintain compliance with Uniform Commercial Code (UCC) requirements regarding negotiable instruments.
Florida Legal Definition
Under Florida law, an allonge is recognized as a valid attachment to a negotiable instrument under the provisions of the Uniform Commercial Code, codified in Chapter 673 of the Florida Statutes. It is considered part of the original document when properly affixed and executed. Florida courts have upheld the use of allonges as valid instruments for transferring ownership or enforcement rights of promissory notes, provided there is clear intent and physical attachment. In foreclosure or debt collection cases, the allonge serves as evidence of lawful transfer or endorsement of the note.
How It’s Used in Practice
In practice, lenders, mortgage holders, and financial institutions use allonges when transferring notes that lack sufficient space for additional endorsements. Each endorsement on an allonge typically includes the name of the transferee, the signature of the transferor, and the date of transfer. In real estate finance, an allonge ensures that mortgage notes are properly assigned between lenders or investors. Legal professionals verify the attachment and authenticity of an allonge during audits, securitization reviews, or foreclosure proceedings. The allonge maintains the enforceability and traceability of the underlying debt instrument.
Key Takeaways
- An allonge is an additional sheet attached to a negotiable instrument for endorsements.
- It is valid only when physically affixed to the original document.
- Florida law recognizes allonges under Chapter 673 of the Uniform Commercial Code.
- Commonly used in promissory note transfers, mortgage assignments, and lending transactions.
- Ensures a complete chain of title and enforceability of negotiable instruments.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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