A more thorough explanation:

Definition: An indorsee (also spelled endorsee) is a person who receives a negotiable instrument through endorsement. This means that the instrument, such as a check or promissory note, has been signed over to them by the original payee or holder.

An indorsee can be anyone who is legally allowed to receive and hold a negotiable instrument, such as an individual, a business, or a financial institution.

There are different types of indorsees, but one important category is the "indorsee in due course." This refers to an indorsee who acquires a negotiable instrument in good faith, for value, and without knowledge of any defects or issues with the instrument.

For example, if a person receives a check from a friend and then endorses it over to their bank, the bank becomes the indorsee. If the bank received the check in good faith, before its maturity date, and without any knowledge of any problems with the check, then it would be considered an indorsee in due course.

Another example could be a business that receives a promissory note from a customer and then endorses it over to a factoring company. The factoring company becomes the indorsee and can collect the payment from the customer when the note matures. If the factoring company acquired the note in good faith, for value, and without any knowledge of any issues with the note, then it would be considered an indorsee in due course.

These examples illustrate how an indorsee is someone who receives a negotiable instrument through endorsement, and how an indorsee in due course is someone who acquires the instrument in good faith, for value, and without knowledge of any defects or issues.