A Person Who Takes an Instrument Containing a Restrictive Indorsement,"Pay

question 47

Multiple Choice

A person who takes an instrument containing a restrictive indorsement,"Pay to Jack Black in Trust for Mel Gibbs,":

• A)may not pay the proceeds to the indorsee without the due approval of the indorser.
• B)may pay the proceeds to the indorsee paying due regard to whether the indorsee violates a fiduciary duty to the indorser.
• C)may pay the proceeds to the indorsee without regard to whether the indorsee violates a fiduciary duty to the indorser.
• D)may pay the proceeds to the indorser only with the approval and concurrence of the indorsee.

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Definitions:

Earnings

The amount of money that a company makes from its activities, often reported as profit on a financial statement.

Restaurant

A business establishment where meals or refreshments may be purchased and consumed by patrons.

Weekdays

The days of the week excluding the weekend; typically refers to Monday through Friday.

Saturday

The seventh and final day of the week in many religious and calendar systems, considered as a day of rest and worship in some cultures.