Negotiable Instruments Act Section 54 — Instrument indorsed in blank

CHAPTER IV OF NEGOTIATION

General

Summary

A negotiable instrument that has been endorsed in blank—meaning the endorser has signed it without naming a specific person—becomes payable to whoever holds it, even if the instrument was originally made payable to a particular person. This rule applies unless the instrument is a crossed cheque, which is subject to separate provisions.

Official Text

Subject to the provisions hereinafter contained as to crossed cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof even although originally payable to order.