A restrictive indorsement specifies the purpose of the indorsement or the use to be made
of the paper.
Sam Wilson often goes to the horse races, participates in his state€s lottery, and invests
heavily in the stock of major U.S. companies. At work, Wilson is approached by his
coworkers and asked to participate in a football pool. “It’s totally based upon skill,” his
friends claim. In addition, Wilson’s philanthropic club is holding a raffle in which an
individual could win a new car. Are these activities gambling and therefore illegal
activities?
Suretyship and guaranty transactions have the common feature of a promise to answer
for the debt or default of another.