To avoid the risk of loss from theft, a holder can convert a blank indorsement to a special indorsement by writing, above the signature of the indorser, the name of the indorsee.

Question

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A blank endorsement, which consists simply of the signature of the endorser, can be converted into a special endorsement by writing the name of the person to whom the instrument is to be payable above the endorser's signature. This specifies the person to whom the instrument is now payable, thereby adding an additional layer of security against theft or unauthorized negotiation.

To Avoid the Risk of Loss from Theft, a Holder