Manny issued a draft payable to Lorie. Lorie indorsed the draft in blank on the back and gave it to Jerald to satisfy a debt Lorie owed to Jerald.

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10. Manny issued a draft payable to Lorie. Lorie indorsed the draft in blank on the back and gave it to Jerald to satisfy a debt Lorie owed to Jerald.  Which of the following statements correctly describes the status of this instrument?

 A) The draft started as bearer paper, and it is still bearer paper.

 B) The draft started as order paper, and it is still order paper. 

 C) The draft started out as bearer paper, but Lorie converted it to order paper.

 D) The draft started out as order paper, but Lorie converted it to bearer paper.

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