Indicate whether each of the following statements is true or false by writing T or F in the answer column.
1. The writing a holder puts on the back of a negotiable instrument is known as a negotiation. 1. __________
2. An endorsement of an instrument must be for the entire amount. 2. __________
3. The Uniform Commercial Code attributes an implied warranty to an endorsed instrument that the signature is genuine. 3. __________
4. An endorser of an instrument is released from liability by any act that discharges the instrument, such as payment. 4. __________
5. If it is apparent that an instrument has been altered, the holder is not a holder in due course. 5. __________
6. An instrument endorsed in blank is payable to anyone in possession of it.
6. __________
7. An instrument with a special, or full, endorsement is payable only to the person named in the endorsement. 7. __________
8. A restrictive endorsement prevents further negotiation of an instrument.
8. __________
9. If an instrument endorsed in blank is lost, the finder may not legally negotiate it.
9. __________
10. The words “For deposit only” constitute a blank endorsement. 10. __________