The transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder is referred to as ________.
A)negotiation
B)assignment
C)indorsement
D)insurance

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code, negotiation refers to the transfer of a negotiable instrument, such as a check or promissory note, to another person who becomes a holder of the instrument. Assignment refers to the transfer of non-negotiable instruments or other types of property. Indorsement is a term used for when a holder signs the back of a negotiable instrument to endorse it over to another person. Insurance is unrelated to negotiable instruments.

The Transfer of a Negotiable Instrument by a Person Other