To which of the following placements of a negotiable instrument would transfer warranties be applicable?
A)indorsement of the instrument
B)issuance of the instrument
C)presentment of the instrument
D)accommodation of the instrument

Question

Quizplus · Accepted Answer

Transfer warranties are applicable when the instrument is endorsed, as the act of endorsement implies the transfer of ownership or possession of the negotiable instrument. Issuance refers to the creation and delivery of the instrument, while presentment refers to the demand for payment of the instrument. Accommodation is a type of transaction in which a party provides a guarantee or support for the payment of the instrument but does not transfer ownership or possession, so transfer warranties are not applicable in this case.

To Which of the Following Placements of a Negotiable Instrument