Fact Pattern 16-1
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 16-1.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 16-1
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 16-1.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

By writing "Pay to Patricia" above Nina's signature, Patricia is effectively endorsing the check as an order instrument, which requires further endorsement by the designated payee (in this case, Patricia) in order to be negotiated. The check remains payable to Nina's order, with Patricia designated as the payee.

Fact Pattern 16-1 Nina Obtains a Check Payable to Her Order from Oran