What is a Blank Endorsement?

What is a Blank Endorsement?

• A. Only includes the payee's signature, which must be written EXACTLY the way it is made payable.
• B. It is an endorsement that restricts what can be done with the check.
• C. It lists another payee and requires manager approval.
• D. It imposes conditions before payment.

Answer: (A)

A blank endorsement means the payee only signs the back of the check with no extra words or restrictions. This makes the check payable to whoever holds it (a bearer instrument), since there’s no instruction limiting how it can be negotiated. The signature should match the payee’s name exactly as it appears on the check, with nothing added. Because there are no restrictions, a blank-ended check is more susceptible to loss or theft turning into cash for the wrong person. The other scenarios involve restrictions or additional payees or conditions, which is why they are not blank endorsements.

A blank endorsement means the payee only signs the back of the check with no extra words or restrictions. This makes the check payable to whoever holds it (a bearer instrument), since there’s no instruction limiting how it can be negotiated. The signature should match the payee’s name exactly as it appears on the check, with nothing added. Because there are no restrictions, a blank-ended check is more susceptible to loss or theft turning into cash for the wrong person. The other scenarios involve restrictions or additional payees or conditions, which is why they are not blank endorsements.