A nonindorsing transferor makes:
A) all six transfer warranties only to the immediate transferor.
B) all five transfer warranties to all subsequent holders.
C) only four transfer warranties to the immediate transferor.
D) all five transfer warranties, with a change in the fourth warranty, to all subsequent holders.

Question

Quizplus · Accepted Answer

Transfer warranties are those which persons who transfer negotiable instruments make to their transferees. A person who transfers a negotiable instrument to someone else and for consideration makes six warranties to his immediate transferee. If the transfer is by indorsement, the transferor makes these warranties to all subsequent transferees.

A Nonindorsing Transferor Makes