Hand executed and delivered to Rex a $1,000 negotiable note payable to Rex or

bearer. Rex then negotiated it to Ford and indorsed it on the back by merely

signing his name. Which of the following is a correct statement?

a. Rex’s indorsement was a special indorsement.

b. Rex’s indorsement was necessary to Ford’s qualification as a holder.

c. The instrument initially being bearer paper cannot be converted to order

paper.

d. The instrument is bearer paper, and Ford can convert it to order paper by

writing “pay to the order of Ford” above Rex’s signature.

AppendixLO1