Cynthia Todd is the holder of a check with the indorsement "Judd Solomon." To protect herself,Cynthia may:
A) convert the special indorsement to a blank indorsement.
B) convert the special indorsement to a qualified indorsement.
C) write above Judd's signature,"Pay Cynthia Todd."
D) not convert the indorsements,but could only protect her interest in the check by depositing it in her account as soon as possible.

Question

Quizplus · Accepted Answer

By writing "Pay Cynthia Todd" above Judd's signature, Cynthia is creating a restrictive indorsement, which limits the negotiability of the check and ensures that it can only be deposited into her account. This will protect her from any further negotiation of the check by Judd or anyone else. Converting the special indorsement to a blank or qualified indorsement would not provide the same level of protection. Simply depositing the check as soon as possible may not prevent further negotiation of the check.

Cynthia Todd Is the Holder of a Check with the Indorsement