Question

With a(n) indorsement, the indorsee is named. A holder may convert a blank indorsement to a special indorsement by writing the signature of the indorser words identifying the indorsee. By merely indorsing, the indorser promises to pay the holder the amount of the instrument in the event that the drawer or maker defaults. The notation "without recourse" is commonly used to create a(n) indorsement. A special qualified indorsement makes the instrument an order instrument and it requires an indorsement, plus delivery, for _______.

Answer 1

negotiation.

Step-by-step explanation:

A qualified endorsement passes title to a negotiable instrument, e.g. without recourse which means that the endorser assumes the risk of non-payment and takes full responsibility for it.

In order to be valid, a special qualified endorsement must include the name of the endorsee, the signature, and specifically the words "without recourse". A valid special qualified endorsement makes the instrument an order instrument, which means that it is payable to the payee or anyone else that the payee entitles.