Asked by Angel Martinez on Jun 14, 2024
Verified
Assuming a note made by Barbara payable to Carol Jones, which indorsement will limit negotiability?
A) "Pay Carol Jones ."
B) "For deposit only, Acct. #602-043. Carol Jones ."
C) "Pay Connie for Carol M. Jones ."
D) "Pay Claudia as attorney for John Jones. Carol Jones ."
Limit Negotiability
Refers to conditions or restrictions that impair the ability to freely transfer or negotiate a financial instrument.
Indorsement
A signature or note on a document (such as a cheque or bill of exchange) that specifies the future control or ownership of the document.
Payee's Name
The name of the individual or entity to whom payment is to be made on a check, draft, or other financial instrument.
- Learn about the roles and ramifications of indorsements, including those that are special, blank, and restrictive.
Verified Answer
VV
victoriarose vendittiJun 18, 2024
Final Answer :
B
Explanation :
Option B, "For deposit only, Acct. #602-043. Carol Jones," limits negotiability because it restricts the manner in which the note can be transferred or negotiated further, specifically to being deposited only into a specified account.
Learning Objectives
- Learn about the roles and ramifications of indorsements, including those that are special, blank, and restrictive.