What Is Required to Further Negotiate an Instrument When the Payee

question 158

Multiple Choice

What is required to further negotiate an instrument when the payee or indorsee's name is misspelled?

• A) The holder must get the party who made the misspelling to execute a new instrument or indorsement with the correct spelling.
• B) The holder must get the party who made the misspelling to execute an allonge that states that a mistake was made and indicates the correct spelling of the name.
• C) The holder is required to indorse the instrument in both the correct and the misspelled name.
• D) The holder can indorse the instrument in either the correct spelling or the incorrect spelling.
• E) The misspelling renders the instrument nonnegotiable, making further negotiation impossible, and therefore requiring that any further transfer be made by assignment.

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