BLANK INDORSEMENT Meaning and
Definition
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Blank Indorsement is a term commonly used in the field of banking and finance. It refers to a type of endorsement made on the back of a negotiable instrument, such as a check or a promissory note. When a negotiable instrument is endorsed in blank, the person endorsing it simply signs their name on the back of the instrument without specifying a specific payee or recipient of the funds.
This form of endorsement converts the instrument into a bearer instrument, which means that whoever possesses the instrument can negotiate and receive payment for it. Essentially, the blank endorsement makes the instrument payable to the bearer.
Blank indorsements are often used when the payee wants the negotiable instrument to be freely transferable and easily negotiable. It allows for the instrument to circulate more easily in the financial system, as it can be transferred from one person to another by mere delivery, without the need for further endorsement.
However, it is important to note that the use of blank indorsement carries certain risks, as the instrument effectively becomes like cash. If the instrument is lost or stolen, any person in possession of it can claim the payment. Therefore, it is crucial to exercise caution and ensure the safekeeping of a negotiable instrument endorsed in blank.
Common Misspellings for BLANK INDORSEMENT
- vlank indorsement
- nlank indorsement
- hlank indorsement
- glank indorsement
- bkank indorsement
- bpank indorsement
- boank indorsement
- blznk indorsement
- blsnk indorsement
- blwnk indorsement
- blqnk indorsement
- blabk indorsement
- blamk indorsement
- blajk indorsement
- blahk indorsement
- blanj indorsement
- blanm indorsement
- blanl indorsement
- blano indorsement
- blani indorsement
Etymology of BLANK INDORSEMENT
The etymology of the word "blank indorsement" can be broken down as follows:
1. Blank: The word "blank" comes from Middle English "blank" or "blanke", derived from Old French "blanc" meaning "white" or "bright". It originally referred to a white space in writing, later extended to mean an empty or unfilled space.
2. Indorsement: The word "indorsement" (also spelled endorsement) comes from the Old French verb "endosser", meaning "to put a pledge on the back of". It was derived from the Latin word "indorsare", which meant "to write on the back". Over time, "indorsement" came to specifically refer to the act of signing one's name on the back of a document.
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