Substantial risk is associated with the loss or theft of bearer paper

Question

Quizplus · Accepted Answer

Bearer paper is a type of negotiable instrument that is not registered to a specific owner and can be transferred by physical possession. Therefore, if it is lost or stolen, anyone who possesses it can claim its value or use it for fraudulent purposes. This poses a substantial risk for the rightful owner who may not be able to recover the value of the paper or may become a victim of identity theft.

Substantial Risk Is Associated with the Loss or Theft of Bearer