One who is in possession of a negotiable instrument that is drawn,issued,or indorsed to him or to his order or that is indorsed in blank is a(n):
A) bearer.
B) holder.
C) transferor.
D) assignee.

Question

Quizplus · Accepted Answer

A holder of a negotiable instrument has legal possession and ownership of the instrument either by it being drawn, issued, or endorsed to them. The holder has the right to transfer or negotiate the instrument to another party. Option A is incorrect because a bearer refers to someone who possesses a negotiable instrument that is payable to whoever holds it, regardless of who originally owned it. Option C is incorrect because a transferor is someone who transfers the ownership of the negotiable instrument to another party. Option D is incorrect because an assignee is someone who has received the rights to payment of the negotiable instrument through a legal transfer, not necessarily through possession.

One Who Is in Possession of a Negotiable Instrument That