Forged endorsement is a type of fraudulent payment.
In this case the forged signature makes the endorsement fraudulent.
Forging endorsements can be used to prevent the person or legal entity that the payment is made out to from being able to receive its value (such as cashing a cheque).
But where the instrument has been endorsed in blank, it can be negotiated by mere delivery and the holder derives his title independent of the forged endorsement and can claim the amount from any of the parties to the instrument.
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