What does an endorsement in blank allow?

An endorsement in blank allows for the transfer of ownership to the bearer of the instrument, such as a check. When a check is endorsed in blank, the endorser signs their name on the back without specifying a particular payee. This means that anyone holding the check can potentially cash or deposit it, as it no longer has a designated recipient. This feature makes the check transferable to anyone who possesses it, allowing for greater flexibility in its use.

The other options do not accurately reflect the nature of a blank endorsement. For instance, endorsing a check to a specific individual would be represented by a different type of endorsement, known as a special endorsement. Similarly, depositing the check only in a bank account would not encompass the broader transferability that comes with a blank endorsement, and cancellation of the check is unrelated to the idea of endorsement. Thus, recognizing the function of a blank endorsement focuses on its ability to allow ownership transfer to anyone who holds the check.