A lost check with a blank endorsement on it can be cashed by

A lost check with a blank endorsement on it can be cashed by

• A. The Payee Only
• B. The Bank
• C. Anyone Who Has The Check
• D. The Issuer

Answer: (C)

A blank endorsement turns the check into a bearer instrument. With no specific payee named, the right to cash it follows the physical possession of the check. So the person who has the check can present it to a bank and cash it (subject to the bank’s verification). This is why it’s dangerous to lose or misplace a blank-endorsed check—anyone who finds it can cash it. The other options don’t fit: a named payee would limit cashing to that person, a bank isn’t automatically entitled to cash the check just by virtue of being the bank, and the issuer is the one who wrote the check, not someone who would typically cash it.

A blank endorsement turns the check into a bearer instrument. With no specific payee named, the right to cash it follows the physical possession of the check. So the person who has the check can present it to a bank and cash it (subject to the bank’s verification). This is why it’s dangerous to lose or misplace a blank-endorsed check—anyone who finds it can cash it. The other options don’t fit: a named payee would limit cashing to that person, a bank isn’t automatically entitled to cash the check just by virtue of being the bank, and the issuer is the one who wrote the check, not someone who would typically cash it.