Which article of the UCC relates to types of endorsements for checks?

Study for the APRP Exam. Prepare with flashcards and multiple choice questions. Each question includes hints and explanations. Elevate your chances of success with expert insights and detailed analysis. Get ready for your certification exam!

The correct answer is UCC 3, which specifically addresses negotiable instruments, including checks. One of the key components of UCC 3 is the definition and regulation of endorsements. An endorsement on a check is a signature or equivalent mark of the payee, and UCC 3 categorizes the types of endorsements, such as blank endorsements, special endorsements, and restrictive endorsements, each with its own legal implications and uses in the negotiability and transfer of checks.

This focus on endorsements within UCC 3 is crucial for understanding the transferability of negotiable instruments, as well as the rights and responsibilities of parties involved in the transaction. UCC 1 deals with general definitions and principles applicable across the Uniform Commercial Code, while UCC 2 pertains specifically to the sale of goods, not checks. UCC 4 relates to bank deposits and collections, which, while important, does not cover the types of endorsements directly. Therefore, UCC 3 is the most relevant article for questions regarding endorsements on checks.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy