Legal Definitions - blank indorsement

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.