Indorser Liability for Negotiable Instrument

The video explains the liability of endorsers on negotiable instruments. It covers the warranties endorsers make to both the original maker or drawer and subsequent transferees. These warranties include having good title, no forgeries, and no material alterations. The video also discusses the potential liabilities and implications for endorsers if an instrument is dishonored or wrongfully paid.

Under what condition can a holder of an instrument seek payment from prior endorsers?

• When the instrument is honored

• When the instrument is dishonored

• When the instrument is lost

• When the instrument is altered

What is one of the warranties an endorser makes to the original maker of an instrument?

• The instrument is endorsed

• The instrument is negotiable

• The instrument has good title

• The instrument is insured

Which of the following is NOT a warranty made by an endorser to the original maker?

• No forgeries

• Good title

• No interest charges

• No material alterations

What additional warranty does an endorser make to a subsequent transferee?

• The instrument is negotiable

• The instrument is endorsed

• The payor is solvent

• The instrument is insured

What is a potential consequence of endorser liability?

• Reduced liability for the maker

• Guaranteed payment for the holder

• Increased liability for the endorser

• No liability for the endorser