A __________ adds language such as "Without recourse" to limit the indorser's loss exposure due to nonpayment.
A) non-restrictive indorsement
B) qualified indorsement
C) lateral indorsement
D) unqualified indorsement

Question

Quizplus · Accepted Answer

A qualified indorsement is when the indorser adds specific language, such as "without recourse," to limit their liability in case the instrument is not paid. This contrasts with an unqualified indorsement, where the indorser does not limit their liability.

A __________ Adds Language Such as "Without Recourse" to Limit