Which of the following is required regarding indorsements?
A) An indorsement must be written on the back side of the instrument.
B) There must be compliance with Federal Reserve Board guidelines in order for the instrument to be negotiable.
C) An indorsement must be written on the instrument or on a paper affixed to the instrument.
D) An indorsement must be dated.

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), an indorsement can be on the back side of the instrument, but it can also be on a separate paper affixed to the instrument. Compliance with Federal Reserve Board guidelines is not required for negotiability, and while it is good practice to include a date on an indorsement, it is not required.

Which of the Following Is Required Regarding Indorsements