Remember that dream you had in which you found a blank check that was signed by the account holder, and you took a trip to the bank, followed by a shopping spree?
That’s a type of “blank endorsement.” A check made payable to “cash” is the most well-known type of blank endorsement. Because it says “cash” instead of someone’s name, the check is similar to cash, in that it can be used by anyone.
Blank endorsements are things like checks (i.e. “financial instruments”) that are signed off by the account owner, but without a payee specified. Don’t try blank endorsement at home, kids.
Related or Semi-related Video
Finance: What is a Co-signer?7 Views
Finance a la shmoop what is a cosigner? well it's just this oh wait
that goes in the trigonometry video people why don't you do this all right [Man discussing trigonometry]
never mind cosigner it's this... okay all right we're in finance so a cosigner is
this there we go it's your mom you really wanted that
condo with the nice view of the park the cool arts district and the local dentist [Dentist office building]
office nearby for some weird reason but the building owners just didn't trust
you alone to make the payments yourself which makes sense given that you're a
part-time barista who takes at least one sick day every week you blame them so [Sick days marked on calendar]
your condo dream seems a well a bit out of reach luckily for you the bomb
or Bank of mom came in handy when she co-signed the loan along with you all [Mum signing loan agreement]
right what does that co-signing mean well it means that you are the first one
obliged to pay the monthly payments on your loan but if you don't well then the
Bank of America way bigger than the bank of mom can come after mom and she is
directly legally obligated to pay the loans that you promised - hey so yeah
you got your condo dream but mom's living quarters aren't so spacious yeah [Mum laying in a car backseat]
well you made her co-sign for your deadbeat self hanging her butt up to dry
and now she's well enjoying the view from her SUV parked on the curb of the [SUV window winds down and Mum appears]
road outside the dentist hang in there mom you'll get a better
parking lot slot with a view someday
Up Next
What is collateral? Any type of asset or property that a borrower pledges as security for a loan is classified as collateral. As the lender has a c...
What is a Blank Check Company? A Blank Check Company is a company that is just starting out. They are often created as new penny stocks that presen...
What is a Comfort Letter? When a company’s books are being audited, when new pending issue securities are revising their financials to meet compl...
What is a Banker’s Acceptance Note? Banker’s acceptance notes are short-term debts that companies can issue; they differ from general debt offe...