What is the effect of an unqualified, blank endorsement?
A) It turns previous order paper into bearer paper.
B) It turns previous bearer paper into order paper.
C) It turns a blank endorsement into a special endorsement.
D) It turns an allonge into an endorsement.
E) It turns an endorsement into an allonge.

Question

Quizplus · Accepted Answer

An unqualified, blank endorsement on a negotiable instrument, such as a check, means that the endorser simply signs their name on the back without specifying a new payee. This effectively turns the instrument from order paper, which requires endorsement to a specific individual, into bearer paper, which can be cashed or transferred by whoever holds it.

What Is the Effect of an Unqualified, Blank Endorsement