Asked by Kevin Huynh on May 01, 2024
Verified
An indorser to a negotiable instrument is generally primarily liable.
Indorser
In finance, someone who signs a negotiable instrument, such as a check or promissory note, over to someone else, thereby transferring the rights of that document.
Primarily Liable
The condition of being initially and directly responsible for fulfilling an obligation or debt, without shifting that responsibility to another party.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name mentioned.
- Differentiate the accountability of makers, drawers, and endorsers related to negotiable instruments.
Verified Answer
DP
Diana PetreaMay 06, 2024
Final Answer :
False
Explanation :
A person who indorses a negotiable instrument usually is secondarily liable.
Learning Objectives
- Differentiate the accountability of makers, drawers, and endorsers related to negotiable instruments.