Which of the following refers to a party that transfers their rights to another person in a negotiable instrument?

The correct answer is the indorser, as this term specifically refers to a party who transfers their rights in a negotiable instrument, such as a check or promissory note, to another person. When the indorser signs their name on the back of the instrument, they are effectively endorsing it, which allows the transfer of ownership or rights associated with that instrument.

In the context of negotiable instruments, the indorser plays a critical role in the negotiation process. By endorsing the instrument, the indorser is passing on the right to receive payment or enforce the terms of the instrument to another party, known as the indorsee. This transfer is a fundamental aspect of the functioning of negotiable instruments in commerce and finance, as it facilitates the circulation of these financial documents.

The other terms, while related to the realm of negotiable instruments, do not refer to the act of transferring rights in the same way. For example, the drawer is the individual or entity that creates or issues the instrument, and the debtor is the party that owes money or is obligated to pay under the terms of the negotiable instrument. The indorsee, on the other hand, is the recipient of the rights after the transfer has been