John issued a check to Mary who signed it as a blank endorsement.Mary lost the check.If someone finds it,he/she could
A)sign his/her name under Monica's and cash the check.
B)write "for deposit only" under Monica's signature and deposit it to his/her account.
C)do nothing;the check must be made payable to him/her before it can be cashed.
D)do nothing;since he or she is neither a payer or payee.

Question

Quizplus · Accepted Answer

With a blank endorsement, the check is payable to whoever possesses it. Therefore, if someone finds the lost check and signs it under Mary's name, they can cash it. While option B is also technically possible, it requires depositing the check into a bank account, which may be more difficult for someone who found a lost check. Option C is incorrect as a blank endorsement means the check is already payable to whoever holds it. Option D is also incorrect since anyone who possesses the check can potentially cash it.

John Issued a Check to Mary Who Signed It as a Blank