A payee has no rights in an instrument until:
A) the drawer or the maker has delivered the instrument to the payee.
B) an acceptor has been established.
C) an accommodation party has signed the instrument.
D) a guarantor has signed the instrument.

Question

Quizplus · Accepted Answer

A payee only gains rights to an instrument when the drawer or the maker has delivered the instrument to the payee. Without delivery, the payee has no claim to the funds represented by the instrument. Acceptance, accommodation party signatures, or guarantor signatures do not affect the payee's rights to the instrument.

A Payee Has No Rights in an Instrument Until