Blank Endorsement

Remember that dream you had in which you found a blank check that was signed by the account holder, and you took a trip to the bank, followed by a shopping spree?

That’s a type of “blank endorsement.” A check made payable to “cash” is the most well-known type of blank endorsement. Because it says “cash” instead of someone’s name, the check is similar to cash, in that it can be used by anyone.

Blank endorsements are things like checks (i.e. “financial instruments”) that are signed off by the account owner, but without a payee specified. Don’t try blank endorsement at home, kids.