A specially qualified indorsement can only be negotiated by indorsement and delivery.

Question

Quizplus · Accepted Answer

A specially qualified indorsement, also known as a restrictive indorsement, restricts the transferability of the instrument to a specific person or for a specific purpose. It can only be negotiated by indorsement, which is the act of the holder signing the back of the instrument to transfer ownership to another person, and delivery, which is the physical or constructive transfer of possession of the instrument to the new owner.

A Specially Qualified Indorsement Can Only Be Negotiated by Indorsement