A restrictive indorsement:
A) always destroys negotiability.
B) disclaims contract liability.
C) attempts to restrict the rights of the indorsee in some fashion.
D) removes warranty liability.

Question

Quizplus · Accepted Answer

A restrictive indorsement attempts to restrict the rights of the indorsee in some fashion, such as by specifying a particular use for the instrument or directing payment to a particular person. It does not destroy negotiability, disclaim contract liability, or remove warranty liability.

A Restrictive Indorsement