Jessie is the maker of a $1000 promissory note in favor of Tyler.Tyler subsequently indorses the note to Ryan by signing just his name.Ryan in turn indorses it to Breanna by indorsing the back of the note,"Without recourse,Ryan." Breanna then indorses it to Liz,the present holder.If Liz collects payment from Tyler,then Tyler can demand payment from
A)Ryan and Breanna.
B)Ryan only.
C)Jessie only.
D)Breanna only.

Question

Quizplus · Accepted Answer

Jessie, as the maker of the promissory note, is primarily liable for payment. Ryan's indorsement "Without recourse" means he does not assume liability for payment if the note is not honored. Breanna, as an indorser, would be secondarily liable, but only if Jessie defaults and Liz has notified Breanna of the dishonor.

Jessie Is the Maker of a $1000 Promissory Note in Favor