Asked by Wendy Bartley on Jul 06, 2024
Verified
A check "payable to the order of Laura" is indorsed in blank if Laura simply delivers it without signing it.
Indorsed in Blank
A signature on a negotiable instrument, such as a check or promissory note, without specifying a new owner, making it payable to the bearer.
Payable
Refers to an amount of money that is owed and should be paid, typically within a specific time frame.
- Comprehend the role and effects of different types of endorsements on the tradability of negotiable instruments.
Verified Answer
VM
Vinit MehtaJul 12, 2024
Final Answer :
False
Explanation :
For a check to be indorsed in blank, Laura must sign the back of the check without specifying a new payee. Simply delivering the check without signing does not constitute a blank endorsement.
Learning Objectives
- Comprehend the role and effects of different types of endorsements on the tradability of negotiable instruments.