Asked by Savannah Pulliam on May 28, 2024
Verified
The words, "Pay to Allan Smith" followed by the endorser's signature create ________
A) a blank endorsement
B) a qualified endorsement
C) a special endorsement
D) a limited endorsement
E) a specific endorsement
Special Endorsement
An endorser’s signature accompanying the name of the endorsee.
- Understand the influence endorsements have on the negotiability and transferability of financial instruments.
- Gain insight into the variance between assorted endorsements and their influence on negotiation and liability matters.
Verified Answer
EL
Evelio LeyvaMay 31, 2024
Final Answer :
C
Explanation :
A special endorsement is created when the endorser signs and specifies a particular endorsee to whom or to whose order the instrument is to be payable, such as "Pay to Allan Smith."
Learning Objectives
- Understand the influence endorsements have on the negotiability and transferability of financial instruments.
- Gain insight into the variance between assorted endorsements and their influence on negotiation and liability matters.
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