What "To Order" and "Blank Endorsed" Actually Means Lloyd's of London Press "Maritime Asia / Intermodal Asia" Magazine December 1993

Consigned to Order ...

Blank Endorsement to Bearer ...

Delivery of A Negotiable Instrument ...

Borrowed Terminology ...

Favourable Position to Bank ...

1. Not a Party to the Contract of Affreightment

   Blank endorsement constitutes ...

2. Perfect Title to the Goods

   Blank endorsement gives the Banks the Perfect Title of the Bill of Lading. In case of ...

3. Facilitating Return of Documents

   In case of failure to collect payment under D/P terms or return of documents to the Beneficiary from the Issuing Bank, without payment due to unacceptable discrepancies under Documentary Credit terms, the Beneficiary can ...

4. Facilitating Assignment of Agent

   In case of emergency, ...

However, some banks do add the endorsement "Delivery to ABC Bank or order" to turn the bills of lading into a "restrictive" endorsement in order to eliminate the loopholes leading to possible frauds utilizing the otherwise "bearer" bill of lading to claim the cargo.

Regrettably, by adding this "restrictive" endorsement, the bank has lost all the favourable position as mentioned above.

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