What is a Blank Check?

A blank check refers to the cheque paper that the depositor receives from the bank. A check that has not been issued by the invoicer. Such blank cheque paper will not be effective unless it is issued. The invoicer deliberately does not record all or a part of the cheque requirements, and signs on the cheques lacking the requirements to leave unfinished cheques supplemented by the holder in the future. There are mainly blank checks of the payee, blank checks on the invoice date, amounts, and blank checks due. Different countries have different regulations on blank checks. Some considered it invalid. Others believe that blank checks are valid as long as the invoicer has the authority to fill them later. ^[1]

Blank cheque

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1.A blank check is a special kind of bill

For general notes, the setting of rights and obligations depends entirely on the drawer itself, while the setting of rights and obligations for blank checks requires the assistance of a counterparty, that is, starting from the drawer and completing the supplementary rights of the counterparty. Therefore, compared with ordinary checks, blank checks are not only special in law, but also have a greater risk in brokering.

2.A blank check is an unfinished bill

Article 85 of the "Bill Law" stipulates that the amount on a cheque can be supplemented by the issuer's authorization, and cheques that have not been pasted must not be used.

Article 86 (1) of the Bill Law stipulates that if the name of the payee is not recorded on the check, it may be supplemented with the authorization of the drawer. ^[2]

Comes with a blank check

1. Transfer of blank checks.

It can be transferred, but the assignee cannot exercise the right to request payment and repayment for blank checks that have not been completed.

2. Loss of blank checks.

Before a blank check is completed without replenishment, if the check is lost or stolen, the loser can only report the loss and stop payment, and cannot take other measures.

Blank check to bearer

1. When the blank check is not completed, the holder shall not exercise the right.

Before a blank check is exercised, the blank check is an uncompleted note. Therefore, the holder cannot exercise the right of the note.

2. The right to fill in blanks.

Holders of blank checks have the right to supplement blank checks.

3. When the blank check is completed, the holder can exercise the rights of the bill.

Including the right to request payment and recourse.

Blank check to payer

1. When the blank check is not replenished, the payer can refuse to pay.

2. When a blank check has been replenished, it has the same effect as a full note, and the payer must not refuse to pay. ^[3]