Fact Pattern 26-1
Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature.
-Refer to Fact Pattern 26-A1. When Patricia writes "Pay to Patricia" above Nina's signature, the check becomes
A) a bearer instrument.
B) an order instrument.
C) a promissory note.
D) a stolen instrument.

Question

Fact Pattern 26-1
Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature.
-Refer to Fact Pattern 26-A1. When Patricia writes "Pay to Patricia" above Nina's signature, the check becomes​
A) ​a bearer instrument.
B) ​an order instrument.
C) ​a promissory note.
D) ​a stolen instrument.

Quizplus · Accepted Answer

When Patricia writes "Pay to Patricia" above Nina's signature, the check becomes an order instrument because it is now payable to a specific person (Patricia) and requires Patricia's endorsement to be negotiated to another party.

Fact Pattern 26-1 Nina Obtains a Check Payable to Her Order from Oran