Which of the Following Statements Is True of an Indorsement

question 10

Multiple Choice

Which of the following statements is true of an indorsement?

• A)It is a necessary component of the negotiation of an instrument and applies only to payments made to a depository bank.
• B)It does not affect future attempts to negotiate the instrument.
• C)It generally does not make a person liable on the instrument even if he/she is engaged in any illegality affecting the instrument.
• D)It makes a person liable on an instrument indorsed by him/her only if the person primarily liable on it does not pay it.

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