Jessie is the maker of a $1000 promissory note in favor of Tyler.Tyler subsequently indorses the note to Ryan by signing just his name.Ryan in turn indorses it to Breanna by indorsing the back of the note,"Without recourse,Ryan." Breanna then indorses it to Liz,the present holder,with a special indorsement.
If Liz collects payment from Tyler,then Tyler can demand payment from:
A) Ryan and Breanna.
B) Ryan only.
C) Jessie only.
D) Breanna only.

Question

Quizplus · Accepted Answer

Jessie, as the maker of the promissory note, is primarily liable for payment. Indorsers like Ryan and Breanna are secondarily liable, but Ryan's "without recourse" indorsement means he disclaims liability. Therefore, Tyler can demand payment from Jessie, the maker.

Jessie Is the Maker of a $1000 Promissory Note in Favor