Which of the following is true of an unqualified indorsement?
A) The order and liability of the indorsers is presumed to be the order in which they indorse the instrument, unless otherwise agreed.
B) The first indorser is presumed to be liable for the full amount in the instrument, unless otherwise specifically agreed.
C) It guarantees payment of the instrument if the maker defaults.
D) It protects subsequent indorsees from liability.

Question

Quizplus · Accepted Answer

An unqualified indorsement does not guarantee payment if the maker defaults, nor does it protect subsequent indorsees from liability. Instead, it implies that the order and liability of the indorsers are presumed to be in the order they indorsed the instrument, unless an agreement states otherwise.

Which of the Following Is True of an Unqualified Indorsement