When an instrument is indorsed in blank,the payee becomes a holder in due course and the instrument may be transferred by delivery alone.

Question

Quizplus · Accepted Answer

An indorsement in blank specifies no particular indorsee and makes the instrument payable to bearer, allowing it to be transferred by delivery alone. However, becoming a holder in due course requires more than just possession; it involves acquiring the instrument for value, in good faith, and without notice of any defects.

When an Instrument Is Indorsed in Blank,the Payee Becomes a Holder