An indorsement "Pay to Jones Construction Company upon completion of the job at No. 10 Park Place" is ineffective under Revised Article 3; the indorsee can enforce the instrument.

Question

Quizplus · Accepted Answer

Under Revised Article 3, a conditional indorsement like this is ineffective to limit the enforceability of the instrument by the indorsee. The indorsee can enforce the instrument regardless of the condition stated in the indorsement.

An Indorsement "Pay to Jones Construction Company Upon Completion of the Job