The statement, "Pay to Constance only," with the endorser's signature is an example of which of the following types of endorsements?
A) Conditional endorsement.
B) Trust endorsement.
C) Endorsement to prohibit further endorsement.
D) Bearer endorsement.
E) Conditional bearer endorsement.

Question

Quizplus · Accepted Answer

This statement is an example of an endorsement to prohibit further endorsement. By specifying "Pay to Constance only," the endorser is limiting the ability to further negotiate or transfer the instrument to anyone other than Constance.

The Statement, "Pay to Constance Only," with the Endorser's Signature