A blank indorsement converts order paper to bearer paper and leaves bearer paper as bearer paper.

Question

Quizplus · Accepted Answer

A blank indorsement is simply the signature of the person who is the payee of the check. This converts order paper to bearer paper, which means that whoever has possession of the check can cash or deposit it. If the check is already bearer paper, meaning it is payable to whoever possesses it, then the blank indorsement does not change that status.

A Blank Indorsement Converts Order Paper to Bearer Paper and Leaves