In relation to a bank bill,endorsement means:
A) that the acceptor and endorser make an agreement as to who is liable for the repayment of the face value to the final holder of the bill.
B) if the acceptor cannot repay the face value to the holder at maturity, it must draw a bill to meet its obligations.
C) the endorser has a contingent liability when the bill matures.
D) the drawer agrees to pay an additional fee to the acceptor for guaranteeing the repayment.

Question

Quizplus · Accepted Answer

Endorsement on a bank bill refers to the act of signing the bill by the endorser, thereby demonstrating their commitment towards paying the face value of the bill if the acceptor fails to do so. Hence, the endorser has a contingent liability when the bill matures.

In Relation to a Bank Bill,endorsement Means