§ 24-3-10 [Explaining Blank Endorsements by Parol]

When someone signs the back of a check or other negotiable document without writing any explanation, that signature is called a "blank endorsement." This rule says that if there is a dispute about what that signature meant, the people involved can use spoken or written statements to explain it.

This matters most when two parties disagree about why the endorsement was made. For example, one person might say the signature meant they were guaranteeing payment, while the other might say it meant something different. The rule allows both sides to bring in outside evidence to show what was actually intended.

This protection also applies to anyone who knew there was a problem with the document before they accepted it. If you took a check knowing it had already been rejected or that something unusual was going on, you cannot ignore those facts just because the endorsement looks simple on its face.