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Asked by Yesenia Gomez on May 07, 2024

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Ashe indorses an order instrument in the following manner: "Pay to Big Bank,for deposit only,Ashe." Discuss the types of indorsements and the legal implications the instrument represents.

Indorsements

In finance, refers to the act of signing the back of a negotiable instrument, such as a check, thereby transferring ownership or authorizing another action related to the instrument.

Legal Implications

The potential legal consequences or effects that actions or decisions can have under the law.

Deposit Only

A deposit only account is a type of bank account where funds can be deposited but not directly withdrawn by the account holder, typically used for specific purposes like settling transactions.

  • Understand the various kinds of endorsements and their implications under the law.
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Kaitlynn SmithMay 13, 2024
Final Answer :
"For deposit only" is a restrictive indorsement and requires that the amount of the instrument be credited to the indorser's account before it is negotiated further.This indorsement is also unqualified,and Ashe makes all the warranties of an indorser if he receives consideration.

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