REG Business Law · Updated November 2026
Blank, Special, or Restrictive Endorsement: What Happens to the Instrument?
The words written by the endorser affect how the instrument can be transferred and used.
Blank endorsement
Usually consists only of the endorser's signature and can convert qualifying order paper into bearer paper.
Special endorsement
Identifies a specific person to whom the instrument is payable.
Restrictive endorsement
Places an instruction or restriction on use, such as for deposit only.
Why it matters
Endorsement form can affect who can negotiate the instrument and how banks must handle it.
The takeaway
Blank endorsement broadens transferability. Special endorsement names the next holder. Restrictive endorsement limits use.
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FAQ
Can a blank endorsement create bearer paper?
Yes under applicable rules.
Does a special endorsement identify a specific person?
Yes.
Is for deposit only restrictive?
Yes.