Sophie issues a promissory note made "payable to the order of Molly." Molly indorses the note by signing her name and gives the note to Dana.Which of the following is correct?
A)Sophie issued a bearer instrument,and Molly kept it in bearer form.
B)Sophie issued an order instrument,but Molly changed it to bearer form.
C)Sophie issued an order instrument,and Molly kept it in order form.
D)Sophie issued a bearer instrument,and Molly changed it to bearer form.

Question

Quizplus · Accepted Answer

Sophie issued an order instrument because it was made "payable to the order of Molly." By Molly endorsing the note with just her signature, she converted it to bearer form, allowing it to be negotiated by delivery alone.

Sophie Issues a Promissory Note Made "Payable to the Order