An Endorsement That Restricts the Instrument Such That It Must

question 32

Multiple Choice

An endorsement that restricts the instrument such that it must be collected by a bank for the endorser or for a particular account and cannot be cashed is which of the following?

• A) Conditional endorsement.
• B) Trust endorsement.
• C) Endorsement for deposit or collection only.
• D) Endorsement that prohibits further endorsement.
• E) Special qualified endorsement.

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Definitions:

S Corporation

A type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing profits and some losses to be passed directly to owners' personal income without being subject to corporate tax rates.

Business Ownership

The legal possession and responsibility for an enterprise, involving rights to the profits and risks of losses.