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These are no different than checks endorsed by the payee without restriction (signed on the back). Every time you just endorse a check, you have converted it into a bearer instrument. Perfectly legal. Just so folks don't misunderstand Duncan, the conversion to a bearer instrument only occurs with a blank endorsement (blank, or Pay to Bearer), not with a special endorsement (Pay To or Pay To The Order Of somebody else). And for minor terminology nits, an unrestricted endorsement is different. A restricted endorsement are words like "for deposit only" or "pay any bank". And these two categories are different from qualified endorsements, which affect liability. Eric