When an indorser includes some specific instruction in an indorsement,it is known as a(n)________ indorsement.
A) blank
B) institutional
C) restrictive
D) qualified

Question

Quizplus · Accepted Answer

A restrictive indorsement is one in which the indorser includes some specific instruction on the use of the instrument by the indorsee. This type of indorsement restricts further negotiation of the instrument and can be used to ensure that the instrument is only used for a specific purpose or by a specific person. Examples of restrictive indorsements include "for deposit only" and "pay to the order of John Smith only."

When an Indorser Includes Some Specific Instruction in an Indorsement,it