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Simple English definitions for legal terms
blank indorsement
Read a random definition: Investor Protection Guide: Viaticals
A quick definition of blank indorsement:
A blank endorsement is when someone signs the back of a piece of paper that can be used as money, like a check, but doesn't write a specific person's name on it. This means that anyone who has the paper can use it as money. There are other types of endorsements that have different rules, like ones that limit who can use the paper or ones that protect the person who signed it. But a blank endorsement is like giving someone a blank check - they can fill in any amount they want and use it however they like.A more thorough explanation:
A blank indorsement is when a person signs the back of a negotiable instrument, like a check or promissory note, without naming a specific payee. This makes the instrument payable to the bearer and negotiable by delivery only.
For example, if John Smith writes a check to Jane Doe and she signs the back without naming anyone else, it becomes a blank indorsement. This means that anyone who possesses the check can cash it or deposit it into their own account.
Blank indorsements are often used when the payee wants to transfer the instrument to someone else without specifying who that person is. However, they can also be risky because they make it easier for someone to steal or forge the instrument.