Fact Pattern 25-1B
Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 25-1B.When Belle signs the back and adds the notation "without recourse," the check becomes
A)a bearer instrument.
B)an order instrument.
C)a promissory note.
D)a nonnegotiable instrument.

Question

Fact Pattern 25-1B 
Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 25-1B.When Belle signs the back and adds the notation "without recourse," the check becomes
A)a bearer instrument.
B)an order instrument.
C)a promissory note.
D)a nonnegotiable instrument.

Quizplus · Accepted Answer

Adding the notation "without recourse" does not change the nature of the instrument from an order instrument. This simply means that Belle, as the endorser of the check, is not assuming any liability for nonpayment by the drawer, Charmayne.