Instrument indorsed in blank
Full Text
Instrument indorsed in blank.—Subject to the provisions hereinafter contained as to crossed cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof even although originally payable to order.
Plain English Summary
States that any instrument endorsed in blank becomes payable to the bearer, regardless of whether it was originally payable to order, subject to crossed cheque rules.
Key Legal Elements
- Applies to negotiable instruments endorsed in blank
- The instrument becomes payable to the bearer thereof
- This conversion occurs even if originally payable to order
- Subject to rules regarding crossed cheques
Practical Note
Converts order instruments to bearer instruments. If A makes a cheque payable to 'B or order', and B endorses it by simply signing his name (blank endorsement), the cheque becomes payable to bearer. Anyone in possession of it can claim payment, subject to bank crossing rules.
हिंदी पाठ
निरंक पृष्ठांकित लिखत।—चेक के रेखांकन (crossing of cheques) के संबंध में इसमें आगे दिए गए उपबंधों के अधीन रहते हुए, निरंक पृष्ठांकित (indorsed in blank) परक्राम्य लिखत उसके धारक (bearer) को देय होता है, भले ही वह मूल रूप से आदेशानुसार (order) देय रहा हो।