Who is known as the holder of an indorsed negotiable instrument?

The holder of an indorsed negotiable instrument is indeed referred to as the indorsee. This term specifically indicates the person to whom the instrument has been transferred or endorsed. When a negotiable instrument, such as a check or promissory note, is indorsed, the original holder signs their name on the back and transfers their rights to a subsequent party. This action creates a legal obligation for the new holder, the indorsee, who now has the right to claim payment or enforce the terms of the instrument under the law.

Understanding the role of the indorsee is crucial in commercial transactions involving negotiable instruments because it establishes the flow of rights and obligations. This clarity allows parties to securely engage in financial dealings, knowing who holds the negotiable instrument at any time.

In contrast, the other terms used in the question, such as drawer (the person who creates or writes the instrument), executor (an individual appointed to carry out the last wishes of a deceased person), and creditor (someone to whom money is owed), do not encompass the role of holding an indorsed negotiable instrument. Hence, they do not fit the definition of the holder in this context.