Kathy endorses a check for which she is the payee to Mike by simply signing her name and handing him the check.If he later adds the words,"Pay to Mike" above her signature,he is committing a material alteration that voids Kathy's indorsement and negotiation to him.

Question

Quizplus · Accepted Answer

Adding "Pay to Mike" above Kathy's signature does not void the endorsement; it simply converts the blank endorsement into a special endorsement, which is a permissible action.

Kathy Endorses a Check for Which She Is the Payee