When should a blank endorsement be used?

A blank endorsement is typically used when a check is to be cashed. This type of endorsement involves simply signing the back of the check without any additional instructions, making it payable to the bearer. It provides the holder of the check with the ability to cash or deposit it without any restrictions.

Using a blank endorsement when cashing a check is most appropriate because it allows for a straightforward transaction. It enables a bank or check-cashing service to process the check more quickly, as there are no specific guidelines on who may cash it.

In contrast, mailing a check or endorsing it with specific instructions (as in option A) usually calls for a different type of endorsement to maintain security or to specify who may collect the funds. Similarly, while the act of receiving a check can involve an endorsement, a blank endorsement is not advisable until the moment of cashing, as it presents a higher risk of theft or fraud if the check is lost or stolen prior to that time. Thus, a blank endorsement serves a clear purpose primarily when one intends to cash the check.