When an instrument is being transferred to an agent or trustee for the benefit of either the endorser or a third party, which kind of endorsement is used?
A) Conditional endorsement.
B) Trust endorsement.
C) Endorsement to prohibit further endorsement.
D) Bearer endorsement.
E) Conditional bearer endorsement.

Question

Quizplus · Accepted Answer

A trust endorsement, also known as a fiduciary endorsement, is used when an instrument is being transferred to an agent or trustee for the benefit of either the endorser or a third party. This type of endorsement specifies that the endorsee (the agent or trustee) is acting in a fiduciary capacity.

When an Instrument Is Being Transferred to an Agent or Trustee