Indorsers are obligated to make the payment only when the:
A)instrument has not been properly presented to the drawee or party obliged to pay the instrument.
B)instrument is not dishonored.
C)notice of dishonor is not given to the secondary party within the time and manner mentioned.
D)instrument has been properly presented to the drawee or party obliged to pay the instrument,and payment must be demanded.

Question

Quizplus · Accepted Answer

Indorsers are obligated to make the payment only when the instrument has been properly presented to the drawee or party obliged to pay the instrument,and payment must be demanded. Therefore, option D is the correct choice. Option A is incorrect because if the instrument has not been properly presented, the indorser is not responsible for payment. Option B is incorrect because if the instrument is dishonored, the indorser is not obligated to make the payment. Option C is incorrect because indorsers are still obligated to make the payment even if notice of dishonor is not given to the secondary party within the time and manner mentioned.

Indorsers Are Obligated to Make the Payment Only When The