To transfer an instrument made "to the order" of the payee, the payee must:

Question

Quizplus · Accepted Answer

Transferring an instrument made "to the order" of the payee requires both endorsing the instrument and delivering it to a third party. Endorsing the instrument means signing the back of it, which shows that the payee intends to transfer ownership to another party. Delivering the instrument to a third party means physically giving it to someone else, who then becomes the new owner of the instrument. Destroying the original instrument is not necessary for transferring it.

To Transfer an Instrument Made "To the Order" of the Payee