Chapter 25 Law - David Cheng Chapter 25 Notes Continue B....

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David Cheng Chapter 25 Notes Continue B. Special indorsement 1. Indentifies the person to whom the indorser intents to make the instrument payable. 2. Has to be followed with signature. C. Qualified indorsements 1. indorser is guaranteeing the payment of the instrument in addition to the transferring title. 2. indorser who does not want to be liable can use a qualified indorsement a. used by people acting in a representative capacity. 3. Special versus blank qualified endorsements. a. requires an indorsement plus delivery for negotiation b. makes the instrument a bearer instrument D. Restrictive Indorsements 1. Requires the indorsee to comply with certain instructions regarding funds but does not prohibit further negotiations. 2. Indorsements prohibits further indorsement. III. Miscellaneous Indorsement Problems A. Misspelled Names 1. Indorsement should be identical to the name that appears on the instrument B. Instruments Payable to Legal Entities 2. Can be drawn payable to legal entities such as estate, or
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This note was uploaded on 04/08/2008 for the course LAW 241 taught by Professor Farwell during the Spring '08 term at Alfred University.

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Chapter 25 Law - David Cheng Chapter 25 Notes Continue B....

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