Blank endorsement of a financial instrument, such as a cheque, 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 a commonly known and accepted term in the legal and business worlds.[2][3]
This is also called an endorsement in blank[2] or blank endorsement.[4]
The prevalent spelling in American English is endorsement; the minority convention, indorsement, is found in older American documents, although the revised Uniform Commercial Code Article on negotiable instruments retains the older spelling.
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See also
References
- ^ Investor Words web site
- ^ a b Answers.com
- ^ The Free Dictionary web site
- ^ Gordon W. Brown and Paul A. Sukys, Business law with U.C.C. Applications pp. 491, 929 (McGraw-Hill, 11th ed. 2006).
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This page was last edited on 14 April 2023, at 12:59