What is endorsement in blank?

• A. A signature by the creator of an instrument, such as a check, that enables any holder of the instrument to assert a claim for payment; because no payee is specified, it becomes a bearer security.
• B. An signature naming a specific payee only.
• C. A stamp indicating payment has been made.
• D. A total endorsement including the date and amount.

Answer: (A)

Endorsement in blank means the signer puts their signature on the instrument without naming a particular payee, turning the instrument into bearer paper. When there’s no named payee, anyone who holds the instrument can present it for payment, because the right to be paid isn’t restricted to a specific person. That’s exactly what the described answer conveys: a signature by the instrument’s creator that allows any holder to claim payment, making it a bearer security.

Understanding helps: if you name a specific payee, you’re creating a named-endorsee endorsement, which restricts who can collect. A stamp indicating payment isn’t an endorsement, and an endorsement that lists date and amount isn’t the defining feature of a blank endorsement.