An endorsement that restricts the instrument such that it must be collected by a bank for the endorser or for a particular account and cannot be cashed is which of the following?
A) Conditional endorsement.
B) Trust endorsement.
C) Endorsement for deposit or collection only.
D) Endorsement that prohibits further endorsement.
E) Special qualified endorsement.

Question

Quizplus · Accepted Answer

An endorsement for deposit or collection only is a restrictive endorsement that specifies the instrument must be deposited into a bank account and cannot be further negotiated or cashed directly. This is commonly seen on checks to ensure they are processed through banking channels for the specific endorser's account or as directed.

An Endorsement That Restricts the Instrument Such That It Must