Asked by Matthew Mitrano on Jul 24, 2024
Verified
One who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or to his order or that is indorsed in blank is a(n) :
A) bearer.
B) holder.
C) transferor.
D) assignee.
Negotiable Instrument
A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.
Bearer
A person in possession of an instrument, such as a check or bond, that is not made out to a specific payee.
- Comprehend the fundamentals of negotiation and the process through which an individual acquires the status of being a holder of a negotiable instrument.
Verified Answer
HW
Heidi Werther-TinneyJul 30, 2024
Final Answer :
B
Explanation :
A holder is a person who has legal possession of a negotiable instrument and is entitled to enforce it. The bearer refers to the person who possesses a negotiable instrument that is payable to the bearer, while an assignee is someone to whom the rights of a negotiable instrument have been transferred. Transferor refers to the party who transfers the instrument to another party.
Learning Objectives
- Comprehend the fundamentals of negotiation and the process through which an individual acquires the status of being a holder of a negotiable instrument.
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