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Simple English definitions for legal terms
blank endorsement
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A quick definition of blank endorsement:
Blank endorsement is when someone signs their name on a financial document, like a check, without specifying who should receive the money. This means that anyone who has the document can cash it or deposit it. It's like giving the document to whoever finds it, which can be risky if it gets lost or stolen.
A more thorough explanation:
Blank endorsement is a type of signature that can be found on a financial instrument, such as a check. This type of endorsement does not have a designated payee, which means that whoever possesses the instrument can demand payment.
For example, if a check is made payable to cash and endorsed on the back with the signature of the account holder, it becomes a blank endorsement. This means that anyone who has the check can cash or deposit it, which can be risky if the check is lost or stolen.
Another example of a blank endorsement is a stock certificate that is endorsed without a designated recipient. This means that the person who holds the certificate can sell or transfer the stock to anyone they choose.
Overall, a blank endorsement essentially turns a financial instrument into a bearer paper, which means that whoever possesses it can use it as if it were cash.