Which of the following best describes a restrictive indorsement?
A)It is an indorsement that has the effect of qualifying, thus limiting, the liability of the indorser.
B)It is an indorsement that attempts to prevent the use of the instrument for anything except the stated use.
C)It is an indorsement that designates the particular person to whom payment should be made.
D)It is an indorsement having no words other than the name of the indorser.

Question

Quizplus · Accepted Answer

A restrictive indorsement is one that restricts the further negotiation of the instrument, often specifying a particular use, such as deposit only, or designating a particular person to whom the instrument can be further negotiated.

Which of the Following Best Describes a Restrictive Indorsement