Blank endorsement

Blank endorsement of a financial instrument such as a check is only a signature, not indicating the payee. The effect of this is that it is payable only to the bearer – legally, it transforms an order instrument ("pay to the order of (the payee)") into a bearer instrument ("pay to the bearer"). It is one of the types of endorsement of a negotiable instrument.

It is "an endorsement consisting of nothing but a signature and allowing any party in possession of the endorsed item to execute a claim."[1]

A blank endorsement is commonly known and accepted in the legal and business worlds.[2][3]

This is also called an endorsement in blank[2] or blank indorsement.[4]

The prevalent spelling in American English is endorsement; the minority convention, indorsement, is found in older American documents.

See also

References

  1. ^ Investor Words web site
  2. ^ a b Answers.com
  3. ^ The Free Dictionary web site
  4. ^ Gordon W. Brown and Paul A. Sukys, Business law with U.C.C. Applications pp. 491, 929 (McGraw-Hill, 11th ed. 2006).