Which of the following is true about an allonge?
A)It must contain the name of a the payee to be valid.
B)It must be accepted by the payee to be valid.
C)It must be affixed to the indorsement.
D)It must be provided only on demand.

Question

Quizplus · Accepted Answer

An allonge is a separate sheet affixed to a negotiable instrument for the purpose of holding additional endorsements when there is no room on the original document. It must be affixed to the indorsement to be considered valid. The name of the payee and acceptance by the payee are not necessary for the allonge to be valid. Additionally, an allonge may be provided at any time, not just on demand.

Which of the Following Is True About an Allonge