Dona transfers an instrument to First National Bank. This transfer is not a negotiation unless
A) Donna is an HDC.
B) First National Bank is an HDC.
C) the instrument is a negotiable instrument.
D) the instrument is an order instrument.

Question

Quizplus · Accepted Answer

In order for a transfer of an instrument to be a negotiation, the instrument must be a negotiable instrument. Therefore, the correct answer is C. A and B are incorrect because being an HDC does not necessarily make a transfer a negotiation. D is incorrect because order instruments can still be negotiable instruments.

Dona Transfers an Instrument to First National Bank