What is a Blank Endorsement?

A Blank Endorsement occurs when a negotiable instrument (such as a check) carries the signature of the endorser but does not indicate the payee of the instrument. A signed check without a specified payee is a blank endorsement. The bearer or holder of the check is the rightful payee.

Blank Endorsement can apply to different types of negotiable instruments, checks being the most common.

Blank Endorsement and Other Forms of Check Endorsement

There are three major types of endorsement, these are;

• Blank Endorsement: This is a type of endorsement that carries the signature of the person who created the negotiable instrument but does not indicate the payee.
• Restrictive Endorsement: Restrictive endorsement occurs when a check note is written for deposit only. In this case, the creator puts his name and signs underneath the first line that carries for deposit only. The account into which the cash will be deposited is also specified.
• Special Endorsement: Payers or creators of negotiable instruments use the special endorsement when the instrument is for a particular person. In the case of a check, the recipient of the check is specified, the payer will write the name of the recipient and sign underneath.