Module: General Practice
Q180: Which of the following specific endorsements converts a "Bearer" instrument into an "Order" instrument?
Endorsement in Blank
Endorsement in Full
Restrictive Endorsement
Select the correct option:
Endorsement in Full
Restrictive Endorsement
Select the correct option:
✅ Correct Answer: B
Endorsement in Blank: The endorser signs only their name.
This makes the instrument payable to anyone who holds it (Bearer). Endorsement in Full: The endorser signs and adds the direction "Pay to X or Order." This specific action converts a bearer instrument into an Order instrument.
Once endorsed in full, the instrument cannot be negotiated further without the signature of the person named (X). Restrictive Endorsement: This prohibits further negotiation entirely (e.g., "Pay X Only").
This makes the instrument payable to anyone who holds it (Bearer). Endorsement in Full: The endorser signs and adds the direction "Pay to X or Order." This specific action converts a bearer instrument into an Order instrument.
Once endorsed in full, the instrument cannot be negotiated further without the signature of the person named (X). Restrictive Endorsement: This prohibits further negotiation entirely (e.g., "Pay X Only").