Which of the following would constitute the creation of an assignment?
A)if the transfer is of nonnegotiable instruments
B)if a transfer qualifies as a negotiation under Article 3
C)if a transferee qualifies as a holder in due course
D)if the indorsement falls under the shelter principle

Question

Quizplus · Accepted Answer

The creation of an assignment would occur if the transfer is of nonnegotiable instruments. Nonnegotiable instruments can only be transferred by assignment, as they do not meet the requirements of negotiability under Article 3 of the Uniform Commercial Code.

Which of the Following Would Constitute the Creation of an Assignment