A blank indorsement converts order paper to bearer paper.

Name: A blank indorsement converts order paper to bearer paper.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A blank indorsement is when the payee simply signs the back of the check without designating a specific endorsee. This converts the order paper (i.e. a check payable to a specific person or entity) to bearer paper, which means it is payable to whoever is in possession of the check.

A Blank Indorsement Converts Order Paper to Bearer Paper