Which of the following stands true for a special indorsement?
A) The payee of a check can indorse a special indorsement over to a third party by writing: "Pay to the order of" the third party and then signing her name.
B) It is known as an agency indorsement.
C) A special indorsement attempts to limit payment to a particular person or otherwise prohibit further transfer or negotiation.
D) Special indorsements such as "for deposit" or "for collection" are effective.
E) A special indorsement is known to create conditional contract liability in the indorser.
Correct Answer:
Verified
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