An indorsement stating "Pay Paula Hobson only":
A) is designed to restrict the rights of the indorser.
B) is given the same effect as an unrestrictive indorsement.
C) will,under the Code,be effective to prohibit further transfer beyond Paula Hobson.
D) is labeled a "qualified indorsement," and it destroys negotiability.

Question

Quizplus · Accepted Answer

The Answer of An indorsement stating "Pay Paula Hobson only":
A) is designed to restrict the rights of the indorser.
B) is given the same effect as an unrestrictive indorsement.
C) will,under the Code,be effective to prohibit further transfer beyond Paula Hobson.
D) is labeled a "qualified indorsement," and it destroys negotiability.

An Indorsement Stating "Pay Paula Hobson Only