An endorsement that is followed by a statement that restricts payment,and can be used as a defense for the endorser against the endorsee,is which of the following?
A)Special unqualified endorsement.
B)Special qualified endorsement.
C)Trust endorsement.
D)Endorsement that prohibits further endorsement.
E)Conditional endorsement.

Question

Quizplus · Accepted Answer

A)A conditional endorsement is a type of restrictive endorsement that,in effect,
creates a defense for the endorser in the event that he does not live up to a preconceived promise.However,the conditional endorsement does not affect the instrument's ability to be further negotiated.

An Endorsement That Is Followed by a Statement That Restricts