Allonge

DEFINITION of 'Allonge'

A sheet of paper attached to a bill of exchange for the purpose of documenting endorsements. The need for an allonge arises as a result of a lack of space on the bill itself.

BREAKING DOWN 'Allonge'

Because a bill of exchange is transferable through endorsement, it may be exchanged among so many parties that these parties don't all fit on the bill. In this case, a separate piece of paper - the allonge - is attached to the bill, acting as a legal extension of the document.

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RELATED FAQS
  1. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
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    Learn what bills of exchange and promissory notes are, along with notation of the primary differences between these two documents. Read Answer >>
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