Definition of Blank endorsement:
A blank endorsement is a signature on a financial instrument such as a check. No payee is specified, so any holder of the instrument could claim payment. The signature essentially turns the instrument into a bearer security. That is, it is not registered to any individual but is payable to the person who possesses it.
The most familiar example of a blank endorsement is a check made payable to cash and endorsed on the back with the signature of the account holder. It's wise to wait to sign that check until getting to the bank.
Open endorsement that carries only the signature of the endorser and does not specify in whose favor it is made (who is the new endorsee), thus converting a document of title (such as a to order bill of lading) into a negotiable (bearer or transferable) instrument. Any holder (bearer) of a blank-endorsed document has claim to ownership of the merchandise or property that is the subject matter of the document. Blank-endorsed insurance policies, for example, can be used by any party to make a claim. Also called endorsement in blank.
How to use Blank endorsement in a sentence?
- Because the check was endorsed with blank endorsement , both Ryan and Jimmy fought desperately to acquire it, so as to gain the four-hundred dollars it was made out for.
- A restrictive endorsement requires the check to be deposited, not cashed.
- A blank endorsement is signed but has no designated payee.
- A pay-to endorsement restricts payment to a designated person.
- He received only a blank endorsement , which is not exactly what he wanted, but he was good with it for now.
- The blank endorsement enabled the transaction to take place sooner rather than later as our primary businessman was out of town.
Meaning of Blank endorsement & Blank endorsement Definition