Indorsements with ineffective restrictions include which of the following?
A) The indorser makes the rights of the indorsee subject to the happening or nonhappening of a specified event.
B) An indorsement "For Collection."
C) An indorsement stating "Pay to Melanie for Sharon."
D) An indorsement that says "For deposit only."

Question

Quizplus · Accepted Answer

An indorsement making the rights of the indorsee subject to the happening or nonhappening of a specified event is considered an ineffective restriction because it attempts to condition the payment, which is not permissible under the Uniform Commercial Code (UCC) regarding negotiable instruments.

Indorsements with Ineffective Restrictions Include Which of the Following