When a Holder Makes a Blank Indorsement of a Negotiable

question 17

Multiple Choice

When a holder makes a blank indorsement of a negotiable instrument that is bearer paper,what legal effect does this have?

• A)There is no effect-bearer paper does not need to be indorsed.
• B)The bearer negotiates it by transfer alone and no further indorsement is necessary for negotiation.
• C)The instrument is no longer negotiable,as it has been altered.
• D)The instrument is converted into order paper.

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