Final answer:
No, SmallTown Bank cannot negotiate the check to the electric company.
Step-by-step explanation:
No, SmallTown Bank cannot negotiate it to the electric company. A check is a negotiable instrument that can be transferred from one party to another through endorsement. In this case, the check was initially drawn on Jones Bank by Tamara and made payable to Chris. Chris indorsed it 'for deposit only, Acct. 2275, Chris' and gave it to Plainer Bank for deposit. Plainer stamped 'pay any bank' on the check along with its endorsement and negotiated it to Stone Bank. Stone Bank simply stamped 'Stone Bank' and negotiated it to SmallTown Bank. However, SmallTown Bank can only negotiate the check to another bank or financial institution that will accept it. The electric company is not a bank or financial institution, so SmallTown Bank cannot negotiate the check to them.