Final answer:
The endorsement indicating a new owner of a check is called a Holder in due course, which refers to an entity that has received the check legally and is entitled to collect its value.
Step-by-step explanation:
The endorsement indicating a new owner of a check is called a Holder in due course. When a check is transferred to a new owner, this individual must endorse the check. The payee is the person to whom the check is originally made out, the drawer is the person who writes the check, and the endorser is the person who signs their name on the back of the check to assign it to another party.
However, a Holder in due course is someone who has obtained the check in good faith and has certain rights to payment that are unaffected by some defenses that could be asserted against the original payee.