Which of the following is true for a qualified indorsement?
A)An instrument containing a qualified indorsement can only be negotiated once.
B)An indorsement once qualified will protect all subsequent indorsers.
C)A qualified indorsement protects only the indorser who wrote the indorsement.
D)A qualified indorsement obligates the indorser to pay in case the maker defaults.

Question

Quizplus · Accepted Answer

A qualified indorsement limits the indorser's liability and protects only the indorser who wrote the indorsement. It does not obligate the indorser to pay in case the maker defaults nor does it protect subsequent indorsers. An instrument containing a qualified indorsement can still be negotiated multiple times.

Which of the Following Is True for a Qualified Indorsement