Asked by Latoya Alexander on Apr 26, 2024
Verified
Which of the following is order paper?
A) A check made out "to the order of cash."
B) A note payable to the order of X and indorsed in blank by X.
C) A note made out to Y's order and indorsed "Pay to Z,Y."
D) A receipt for a payment made by Z.
Order Paper
A negotiable instrument that is payable to a specific person or their order, requiring endorsement for transfer.
Indorsed in Blank
Pertains to a legal document, typically a negotiable financial instrument, that has been signed by the endorser but without specifying the endorsee, allowing any holder to claim the document's value.
- Identify the differences between bearer paper and order paper, and understand the negotiation mechanisms for both under the guidelines of the UCC.
Verified Answer
MB
Mitzi BoltonApr 29, 2024
Final Answer :
C
Explanation :
If an instrument is payable to the order of a specific payee,it is called order paper,and it can be negotiated by transfer of possession of the instrument after indorsement by the person specified.
Learning Objectives
- Identify the differences between bearer paper and order paper, and understand the negotiation mechanisms for both under the guidelines of the UCC.