The case, State of Qatar v.First American Bank of Virginia , held that:
A) a stolen check which is indorsed in blank cannot be freely negotiated by the bearer.
B) the phrase "for deposit only" effectively limits the depositary bank to handle the instrument in a manner consistent with the transaction.
C) the phrase "for deposit only" is not an effective restrictive indorsement.
D) depositary banks are not required to handle checks consistent with the restrictive indorsement.

Question

Quizplus · Accepted Answer

The case held that the phrase "for deposit only" effectively limits the depositary bank to handle the instrument in a manner consistent with the transaction, indicating that such an endorsement is a restrictive endorsement.

The Case, State of Qatar V