When a special endorsement is made, the instrument becomes order paper and may be negotiated only by an endorsement and delivery.

Name: When a special endorsement is made, the instrument becomes order paper and may be negotiated only by an endorsement and delivery.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

A special endorsement restricts the negotiability of an instrument to only the endorsee named on the endorsement. This makes the instrument order paper, which means it can only be negotiated through endorsement and delivery.

When a Special Endorsement Is Made, the Instrument Becomes Order