A holder of a negotiable instrument is:
A) Anyone who is in possession of a bearer instrument or anyone who is in possession of an
instrument payable to that person.
B) Anyone who is rightfully in possession of an instrument.
C) Anyone who has possession of an instrument.
D) Anyone who is in possession of an instrument payable to that person.
E) Anyone who is in possession of an instrument payable to that person if the person has
indorsed the instrument.
Question 2
What effect can indorsements have on the character of negotiable instruments?
A) Indorsements can convert order paper to bearer paper, but not vice versa.
B) Indorsements can convert bearer paper to order paper, but not vice versa.
C) Indorsements can convert order paper to bearer paper, and can convert bearer paper to
order paper, so long as the instrument expressly allows such conversions.
D) Indorsements can convert order paper to bearer paper, and can convert bearer paper to
order paper.
E) Indorsement cannot change either bearer or order paper to the other classication.
Polyclitus, Doryphoros (The Spear Bearer).
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