Exam 23: Negotiable Instruments: Transfer and Liability

Lindsey, an accountant for Madison & Monroe, acquires a negotiable instru-ment from Norma by promising to pay its face value in thirty days. Lindsey ac-quires the status of an HDC when she

Amy is the maker of a note, on which Bert is secondarily liable. Credit Instruments Company (CIC) is the current holder of the note. Bert will be obli-gated to pay the note if

Aziz transfers a negotiable instrument to Bhutto. The instrument is not defective if it is

Transfer warranties can be disclaimed with respect to any instrument, including checks .

Duke signs a note "payable to the order of Equity Bank." Unless Duke has a valid defense against payment, his liability on this note is

Notice of dishonor may be given in any reasonable manner.

Plumbing & Pipes Supply Company issues a promissory note with a due date of October 5. Quantum Loan Company accepts the note. Quantum Loan has notice that the note is overdue if the firm takes the note

An unauthorized signature will not bind the person whose name is signed.

When a promissory note is incomplete at the time the maker signs it, the maker is not obligated to pay.

At 1 a.m ., on the sidewalk in front of EZ Credit Corporation, which is closed, Frank buys a $500 promissory note for $50 from Greg. When presented with Frank's demand for payment, Diane, the maker of the note, could successfully claim that Frank

Raul wants to transfer a check to Schmidt. The check is defective if it

The good faith requirement applies only to the holder.