Kara in Toronto has received a cheque from Pam in Vancouver, which Kara endorses with her signature and the words Pay to John Black only, and mails it to John Black in Halifax. Black takes it to his bank to cash. The bank will refuse to do so.

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Cassidy Allen · Accepted Answer

Final Answer : False, Explanation :  The bank will likely accept the cheque because Kara's endorsement Pay to John Black only is a special endorsement, which specifies the person to whom the bank should make payment, thus making John Black the rightful payee.

Kara in Toronto has received a cheque from Pam in Vancouver, which Kara endorses with her signature and the words "Pay to John Black only," and mails it to John Black in Halifax. Black takes it to his bank to cash. The bank will refuse to do so.

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