Pursuant to law, the issuer of a check can and is authorized by law to write “non-negotiable on the back of the check, thus giving rise to the non-negotiable check. This non-negotiability of the check implies there cannot be any kind of negotiation with it. Therefore, its bearer cannot endorse it or give it to a third party as part of a business or payment since this third party will not be able to collect it.
Undoubtedly, like the check not to the order or the check made to one person, the main advantage of a non-negotiable check is the certainty that it is drawn and will be collected by the holder in due course. Besides, as for the holder it is beneficial in the event of a lost or stolen check since the one who has it will not be able to collect it. Generally, “Non-negotiable” is written on the back of the document, especially in the middle thereof in order to unable any other writings and revoke any possible endorsements.