A notation on a negotiable instrument, usually showing within the lower-left nook, gives an area for the payer to point the aim or motive for the cost. For instance, a test written to a landlord would possibly embody “Lease for July” on this space, whereas one remitting cost to a contractor may state “Bill #1234.” This notation is non-binding and doesn’t legally dictate how the payee should allocate the funds.
This informational space serves a number of sensible functions. It assists the payer in monitoring bills and reconciling financial institution statements. For the payee, it may well assist in figuring out the cost’s meant utility, significantly when a number of excellent invoices or obligations exist. Traditionally, this apply developed as a easy technique for record-keeping, predating subtle accounting software program. Its enduring presence on trendy checks highlights its persevering with utility as a handy reference level.
