The Uniform Commercial Code (UCC) Allows Any Indorsement in the Name

question 21

True/False

The Uniform Commercial Code (UCC) allows any indorsement in the name of a fictitious payee to be effective as the payee's indorsement in favor of any person that pays the instrument in good faith or takes it for value or for collection.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Accounts Receivable

Amounts due from customers for merchandise or services rendered by a corporation, still awaiting payment.

Utilities Expense

Costs incurred by a business for basic utilities such as water, electricity, gas, and sewage services.

Services Provided

Services provided refer to the performance of non-tangible tasks or activities by a company for its clients or customers, as opposed to selling physical products.