A restrictive indorsement:
A) disclaims contract liability.
B) removes warranty liability.
C) attempts to restrict the rights of the indorsee in some fashion.
D) always destroys negotiability.

Question

Quizplus · Accepted Answer

A restrictive indorsement attempts to restrict the further transfer or rights of the indorsee, such as by specifying a particular use for the funds or directing payment to a particular person. It does not disclaim contract liability, remove warranty liability, nor does it always destroy negotiability.

A Restrictive Indorsement