Blank endorsement of a financial instrument, such as a cheque, is only a signature, not indicating the payee. The effect of this is that it is payable only to the bearer – legally, it transforms an order instrument ("pay to the order of (the payee)") into a bearer instrument ("pay to the bearer"). It is one of the types of endorsement of a negotiable instrument.
It is "an endorsement consisting of nothing but a signature and allowing any party in possession of the endorsed item to execute a claim."Investor Words web site
A blank endorsement is a commonly known and accepted term in the legal and business worlds.Answers.comThe Free Dictionary web site
This is also called an endorsement in blank or blank endorsement.Gordon W. Brown and Paul A. Sukys, Business law with U.C.C. Applications pp. 491, 929 (McGraw-Hill, 11th ed. 2006).
The prevalent spelling in American English is endorsement; the minority convention, indorsement, is found in older American documents, although the revised Uniform Commercial Code Article on negotiable instruments retains the older spelling.
See also
Banking Bearer bond Blank cheque Draft Forged endorsement Promissory note
References