Asked by Asline Charles on May 12, 2024
Verified
An endorsement that restricts the instrument such that it must be collected by a bank for the endorser or for a particular account and cannot be cashed is which of the following?
A) Conditional endorsement.
B) Trust endorsement.
C) Endorsement for deposit or collection only.
D) Endorsement that prohibits further endorsement.
E) Special qualified endorsement.
Endorsement For Deposit
A directive, usually on the back of a check, indicating that the check should be deposited into the account of the person named in the endorsement.
Restricts
Limits or confines actions, behaviors, or movements within certain parameters or conditions.
- Define and illustrate the categories of endorsements and their legal outcomes.
Verified Answer
NF
Nezzie FergusonMay 18, 2024
Final Answer :
C
Explanation :
An endorsement for deposit or collection only is a restrictive endorsement that specifies the instrument must be deposited into a bank account and cannot be further negotiated or cashed directly. This is commonly seen on checks to ensure they are processed through banking channels for the specific endorser's account or as directed.
Learning Objectives
- Define and illustrate the categories of endorsements and their legal outcomes.
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