Allonge (Banking & Finance Glossary)

Summary

A transfer instrument attached to a negotiable instrument, such as a Bill of Exchange or a Promissory Note, in order to document Endorsements. An Allonge is considered an extension of the instrument itself. The purpose of an Allonge in most Credit Facilities is to transfer the negotiable instrument to the Lender if there has been an Event of Default and the lender is enforcing its rights under the Credit Agreement. A Stock Power is a similar concept in relation to a Stock Certificate.