Legal Definitions - blank endorsement

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.