Sophie Issues a Promissory Note Made "Payable to the Order

question 18

Multiple Choice

Sophie issues a promissory note made "payable to the order of Molly." Molly indorses the note by signing her name and gives the note to Dana.Which of the following is correct?

• A)Sophie issued a bearer instrument,and Molly kept it in bearer form.
• B)Sophie issued an order instrument,but Molly changed it to bearer form.
• C)Sophie issued an order instrument,and Molly kept it in order form.
• D)Sophie issued a bearer instrument,and Molly changed it to bearer form.

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Definitions:

Security Deposit

A sum of money held by a landlord or lender as a safeguard against damage or non-payment, to be returned or applied appropriately after certain conditions are met.

Navigable Airspace

The space above 1,000 feet over populated areas and above 500 feet over water and unpopulated areas.

Ultralight Airplane

A type of light aircraft that weighs less than a certain amount and is designed for recreational flying, often not requiring a traditional pilot's license in some jurisdictions.

Tenants In Common

Owners of an undivided interest in property, with each owner’s rights going to his or her heirs upon death rather than to the surviving co-tenants.