Question

Blank, special, restrictive, and qualified are all terms used to specify types of:

Selections

A. Liens

B. Leases

C. Contracts

D. Endorsements 

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Answer: D

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5 Keys Summary

• Blank, special, restrictive, and qualified are all terms used to classify the types of Endorsements.

• Endorsements are the methods by which a negotiable instrument (such as a promissory note or check) is transferred from one party to another.

• A qualified endorsement typically includes the phrase “without recourse” to protect the endorser from liability if the instrument later defaults or is unpaid.

• A restrictive endorsement limits the use of the instrument, such as by specifying “For deposit only,” restricting its free transferability.

• A special endorsement specifies the new payee, using a phrase like “pay to the order of (a named transferee),” directing the transfer of the negotiable instrument.

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