Which of the following occurs when a former holder of an instrument has the instrument transferred back to him or her by negotiation or other means?
A)Remand
B)Renunciation
C)Reacquisition
D)Rescission
E)Revocation

Question

Quizplus · Accepted Answer

Reacquisition occurs when a former holder of an instrument has the instrument transferred back to him or her by negotiation or other means.When reacquisition occurs,anyone who endorsed the instrument in between the initial acquisition and the reacquisition by the holder has his or her endorsement canceled.When an endorsement is canceled,discharge occurs.The holder who reacquired the instrument can further negotiate the instrument,but the intermediate endorsers will not be held liable.

Which of the Following Occurs When a Former Holder of an Instrument