From: hughes@ah.com (Eric Hughes)
Date: Wed, 10 Aug 94 16:50:07 PDT
To: cypherpunks@toad.com
Subject: e$
In-Reply-To: <199408101945.AA23597@panix.com>
Message-ID: <9408102322.AA25919@ah.com>
MIME-Version: 1.0
Content-Type: text/plain


   These are no different than checks endorsed by the payee without restriction
   (signed on the back).  Every time you just endorse a check, you have
   converted it into a bearer instrument.  Perfectly legal.

Just so folks don't misunderstand Duncan, the conversion to a bearer
instrument only occurs with a blank endorsement (blank, or Pay to
Bearer), not with a special endorsement (Pay To or Pay To The Order Of
somebody else).  

And for minor terminology nits, an unrestricted endorsement is
different.  A restricted endorsement are words like "for deposit only"
or "pay any bank".  And these two categories are different from
qualified endorsements, which affect liability.

Eric