Asked by Denver Osborn on May 13, 2024

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An instrument that is indorsed with a ________ indorsement remains "order paper."

A) special
B) blank
C) restrictive
D) conditional

Indorsed

means to have a signature added to the back of a financial instrument, thereby authorizing its use or transfer to another party.

Order Paper

A financial instrument made out to a specific individual or entity and can only be transferred to a new holder when endorsed by the named party.

Special Indorsement

An endorsement on a negotiable instrument, such as a check, that specifies the person to whom or to whose order the money is to be paid.

  • Distinguish between order paper and bearer paper, including the process of negotiation for each according to the Uniform Commercial Code (UCC) regulations.
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Verified Answer

MS
Madison SmithMay 17, 2024
Final Answer :
A
Explanation :
An instrument that is indorsed with a special indorsement remains "order paper." It can be negotiated only with the indorsement of the person specified.