Transfer warranties would be applicable to which of the following placements of a negotiable instrument?
A) indorsement
B) issuance
C) presentment
D) accommodation

Question

Quizplus · Accepted Answer

Transfer warranties are warranties that are automatically made by the transferor of a negotiable instrument, in which the transferor warrants that the instrument is genuine, that the transferor has good title to it, that all prior parties have endorsed it properly, and that there are no defenses or claims against the instrument. These warranties apply to the transfer of the instrument by indorsement. Therefore, the correct answer is A) indorsement.

Transfer Warranties Would Be Applicable to Which of the Following