Todd indorses a check, "Pay to Interstate Trucking if they deliver the lumber by May 1, 2010." This is a. a blank indorsement. b. a qualified indorsement. c. a restrictive indorsement. d. a special indorsement.

Question

Rhett Knox

Business

18 April, 13:19

Todd indorses a check, "Pay to Interstate Trucking if they deliver the lumber by May 1, 2010." This is a. a blank indorsement. b. a qualified indorsement. c. a restrictive indorsement. d. a special indorsement.

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Answers (1)

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Demarcus Gilbert · Answer 1

It is a Restrictive Indorsement

Explanation:

Restrictive Indorsement is when an instruction is given on a cheque that restricts its use.

In the case given above, Interstate Trucking is only to be paid if they deliver the lumber by May 1, 2010.

Use of the cheque outside this scenario is not possible.

A common example of this is 'For deposit only'. The customer will not be able to withdraw cash, but must deposit the cheque.