Question

helen harrison creates an instrument containing the words "pay jose sanchez" and her signature. this is a? endorsement and creates? paper.

Answer 1

In this situation, when Helen Harrison creates an instrument containing the words “pay jose sanchez” and her signature on it, she is creating an endorsement. An endorsement is defined to mean "a signature (other than that of a maker, drawer or acceptor) that alone or accompanied by other words, is made on an instrument for purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring endorser's liability on the instrument. This type of endorsement is a Special endorsement in which it contains the signature of the endorser along with words indicating to whom, or to whose order, the instrument is payable.