Asked by Denver Osborn on May 13, 2024
Verified
An instrument that is indorsed with a ________ indorsement remains "order paper."
A) special
B) blank
C) restrictive
D) conditional
Indorsed
means to have a signature added to the back of a financial instrument, thereby authorizing its use or transfer to another party.
Order Paper
A financial instrument made out to a specific individual or entity and can only be transferred to a new holder when endorsed by the named party.
Special Indorsement
An endorsement on a negotiable instrument, such as a check, that specifies the person to whom or to whose order the money is to be paid.
- Distinguish between order paper and bearer paper, including the process of negotiation for each according to the Uniform Commercial Code (UCC) regulations.
Verified Answer
MS
Madison SmithMay 17, 2024
Final Answer :
A
Explanation :
An instrument that is indorsed with a special indorsement remains "order paper." It can be negotiated only with the indorsement of the person specified.
Learning Objectives
- Distinguish between order paper and bearer paper, including the process of negotiation for each according to the Uniform Commercial Code (UCC) regulations.