A(n) ________ is an indorsement that states that it is for the benefit or use of the indorser or another person.
A) indorsement in trust
B) indorsement for deposit
C) indorsement prohibiting further indorsement
D) indorsement for collection

Question

Quizplus · Accepted Answer

An indorsement in trust is an indorsement that states that it is for the benefit or use of the indorser or another person. It is commonly used when someone wants to transfer a negotiable instrument to a trustee for safekeeping or to hold in trust for someone else. The trustee can then negotiate the instrument on behalf of the beneficiary.

A(n) ________ Is an Indorsement That States That It Is