Who is generally responsible for payments made under a qualified indorsement?

In the context of a qualified indorsement, the indorser is generally responsible for payments. A qualified indorsement includes a phrase such as "without recourse," which limits the liability of the indorser regarding future payments on the instrument. However, the very act of indorsing the document officially transfers the right to collect payment to the endorsee.

Nevertheless, by using a qualified indorsement, the indorser indicates that they are not responsible for ensuring that the payment is made by the issuer of the instrument. This means that while the indorser facilitates the transfer of the payment obligation, they will not be held accountable if the payment is not honored. Understanding this role is key in financial and legal contexts, particularly in how liability is assigned in situations involving negotiable instruments. Thus, the correct answer highlights the primary role of the indorser in the payment chain while also acknowledging their limited liability under qualified indorsements.