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Eric Hughes
hughes at ah.com
Wed Aug 10 16:50:07 PDT 1994
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
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