Blank endorsement
Encyclopedia
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."
A blank endorsement is commonly known and accepted in the legal and business worlds.
This is also called an endorsement in blank or blank indorsement.
The prevalent spelling in American English is endorsement; the minority convention, indorsement, is found in older American documents.
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
is only a signature
Signature
A signature is a handwritten depiction of someone's name, nickname, or even a simple "X" that a person writes on documents as a proof of identity and intent. The writer of a signature is a signatory. Similar to a handwritten signature, a signature work describes the work as readily identifying...
, not indicating the payee. The effect of this is that it is payable only to the bearer
Bearer
Bearer may refer to:* Bearer or porter, a person who carries objects* Bearer channel, a telecommunications term* Bearer instrument, a type of document* Beam or bearer, a structural element...
– legally, it transforms an order instrument ("pay to the order of (the payee)") into a bearer instrument
Bearer instrument
A bearer instrument is a document that indicates that the owner of the document has title to property, such as shares or bonds. Bearer instruments differ from normal registered instruments, in that no records are kept of who owns the underlying property, or of the transactions involving transfer of...
("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."
A blank endorsement is commonly known and accepted in the legal and business worlds.
This is also called an endorsement in blank or blank indorsement.
The prevalent spelling in American English is endorsement; the minority convention, indorsement, is found in older American documents.
See also
- Banking
- Bearer bondBearer bondA bearer bond is a debt security issued by a business entity, such as a corporation, or by a government. It differs from the more common types of investment securities in that it is unregistered – no records are kept of the owner, or the transactions involving ownership. Whoever physically...
- Bearer instrumentBearer instrumentA bearer instrument is a document that indicates that the owner of the document has title to property, such as shares or bonds. Bearer instruments differ from normal registered instruments, in that no records are kept of who owns the underlying property, or of the transactions involving transfer of...
- Blank cheque
- Draft
- Negotiable instrumentNegotiable instrumentA negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. According to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either...
- Promissory notePromissory noteA promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...