In one sentence
A paper attached to a promissory note carrying additional endorsements when there is no room left on the note itself.
The longer version
When a note changes hands, the transfer is evidenced by an endorsement. Notes that have been sold several times run out of space, so the endorsements continue on an allonge that is firmly affixed to the note and travels with it permanently.
The requirement that it be affixed is not a formality. A loose allonge is one of the more common collateral exceptions, and in a dispute over who holds the note the chain of endorsements is the evidence. Custodians check for it specifically.
Common questions
- When is an allonge needed?
- When a note has no remaining space for an endorsement, or where practice calls for endorsements to be made on an attached page rather than the note face.
- Does an allonge have to be physically attached?
- Yes. It must be affixed to the note so the two travel as one instrument. A detached allonge is a standard collateral exception and can complicate enforcement.
- What happens if the endorsement chain is broken?
- The holder may struggle to prove standing to enforce. Curing it usually means obtaining corrective endorsements from prior holders, which is slow and sometimes impossible if an entity no longer exists.
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