Ana signs a check payable to Boz, who indorses the back, gives it to Credit Union, and receives cash. The transfer of the check from Boz to Credit Union is

Question

Quizplus · Accepted Answer

When Boz indorses the back of the check and gives it to Credit Union, it is considered a negotiation. A negotiation is defined as the transfer of an instrument in such a manner as to constitute the transferee the holder of the instrument. In this case, Credit Union becomes the holder of the check and is able to receive cash from it.

Ana Signs a Check Payable to Boz, Who Indorses the Back